Ericsson acquires majority of Nortel's US wireless business for $1.13bn

Ericsson acquires majority of Nortel's US wireless business for $1.13bn

The US$1.13 billion purchase follows the completion of the auction process initiated by Nortel.

The transaction is subject to approvals in the US and Canadian Bankruptcy Courts, as well as regulatory and other customary closing conditions.

The acquisition gives Ericsson an installed base and a healthy business that provides major operators with CDMA technology and support services.

It also strengthens Ericsson's ability to serve North America's leading wireless operators in the evolution to LTE.

The purchase significantly expands Ericsson's footprint in North America, particularly as this region is emerging as an early adopter of LTE technology.

The agreement includes important CDMA contracts with North American operators such as Verizon, Sprint, US Cellular, Bell Canada and Leap, as well as LTE assets, certain patents and patent licences relating to CDMA and LTE.

Nortel's customers will benefit from the continued support of Nortel's installed CDMA base and the migration path to LTE.

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