Genband Inc. has saddled up and ridden forth as the “stalking horse” bidder for Nortel Networks Ltd. ‘s Carrier VoIP and Application Solutions (CVAS) business with an offer of $282 million, a move that will trigger an auction process in early 2010 when other interested parties can submit competitive bids. (See Nortel to Sell VoIP Unit to Genband.)
A pre-Christmas bid announcement had been anticipated for what is one of the few remaining Nortel business units still to pin down a buyer. (See Analyst: Nortel VoIP Biz Bids Imminent and Nortel: What’s Left on the Shelf?)
Genband, which has teamed up with one of its shareholders, One Equity Partners , to make the bid, says the agreed purchase price is $282 million, but the “total cost of ownership [is] in excess of $400 million.” That $400 million includes the $282 million starting price plus “required working capital, infrastructure cost, transitional services cost, taxes, and Read more