Just as 2006 came to a close, so too did Nortel Networks Ltd.’s sale of its UMTS radio access business to Alcatel-Lucent. The $320 million purchase closed on Dec. 31, 2006, after regulatory approvals.
Approximately 1,700 of Nortel’s UMTS employees moved to Alcatel-Lucent as part of the agreement.
The sale was first announced in September.
“Our customers will clearly benefit from the high value this acquisition brings, and the pre-integration work has progressed very well,” said Mary Chan, president of Alcatel-Lucent’s wireless activities.
For Alcatel-Lucent, the acquisition positions the company for significant leadership in the continued technological evolutions from 3G to 4G.
“Our combined expertise and portfolios will enable us to deliver the most compelling UMTS offer for our customers, allowing them to provide their subscribers with innovative and high-speed 3G services,” Chan said. “We are well positioned to capture the UMTS market growth opportunity.”
The sale also comes on the heels of a final approval of a $2.25 billion global settlement reached between Nortel and its shareholders to settle a pair of lawsuits filed after the company revised its financial results between 2001 and 2005.
Alcatel-Lucent closes on $320M UMTS purchase
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