Avaya wins $900m auction for Nortel corporate network business

Acquisition could pose a fresh challenge to market leader Cisco

Avaya acquires Nortel business

Communications firm Avaya has announced it is to acquire Nortel Enterprise Solutions for $900m (£544m), with a further $15m (£9m) set aside for an employee retention programme.

Canadian telecommunications vendor Nortel has been operating under Chapter 11 bankruptcy protection and attracted bids from Avaya and Siemens Enterprise Communications.

The announcement follows completion of the auction for Nortel's corporate network systems business, although the final transaction is subject to court and customary regulatory approvals in both Canada and the US.

The acquisition could help Avaya pose a more coherent challenge to market leader Cisco.

Avaya president and chief executive Kevin Kennedy said: "Our successful bid brings us closer to adding Nortel and its complementary channel, portfolio, research and development, and global presence to Avaya. We believe the acquisition brings inherent value to both organisations’ customers, employees and partners, and we look forward to its successful conclusion."