Sony Ericsson Buys CDMA Part Of Nortel
Sony Ericsson will buy the CDMA and LTE parts of Nortel Carrier Networks division. The CDMA and LTE divisions will be sold for $1.13 billion. Nortel supplies CDMA equipment to Verizon, Sprint, US Cellular, Bell Canada and Leap. Nortel CDMA generated 2 billion in 2008. Coupled with Ericsson, the profits are expected to go through the roof.
This transaction is to be given permission by the by the courts as Nortel needs to get done with the bankruptcy restructuring process. The deal was made after and auction was held and Ericsson won it, buying the CDMA and LTE parts of the carrier. This will be of great help to the sales of Ericsson in North America.
The takeover will add 2,500 employees, out of which 400 are focused on LTE. NSN earlier announced an unsolicited bid to buy the CDMA and LTE assets for USD 650 million, but Nortel organized the auction in the hope of getting higher offers.