NORTEL UPDATE – AUGUST 5TH 2009
CUSTOMER LETTER
Dear [Enterprise Customer]:
Following Nortel’s announcement on July 20 that it had entered into a “stalking horse” asset and share sale agreement with Avaya Inc. for its North American, Caribbean, Latin American and Asia Enterprise Solutions business, and an asset sale agreement with Avaya for the Europe, Middle Eastern and Africa portion of its Enterprise Solutions business, for US$475 million, I am pleased to say that the courts in the US and Canada have now approved the stalking horse bid and set out the timelines for the associated auction process.
The court has set a deadline of September 4th for other qualified bidders to come forward and present their bids, and a date of September 11th for a face-to-face auction in New York to determine the successful bid for Nortel’s Enterprise Solutions assets. The successful bid and consummation of the transaction will be subject to a number of conditions, including further court approval and regulatory and antitrust review, before integration work can begin. Nortel hopes to be able to close the sale transaction by the end of this calendar year.
The scope of the transaction includes the planned sale of substantially all of the assets of the Enterprise Solutions business globally as well as the shares of Nortel Government Solutions Inc. and DiamondWare, Ltd. This is the best path forward for Nortel’s Enterprise Solutions business. If successfully concluded, these agreements would enable Nortel customers to continue to benefit from Nortel-created technology and innovation. And most importantly, it would provide clarity on the path forward for Nortel’s Enterprise customers, partners and employees.
Nortel has received tremendous support from Enterprise customers around the globe over the past several months. Customers have stated categorically that they value the innovation in Nortel’s technology, the simplicity of its solutions, and the value they bring to your business. If successfully completed, the successful buyer could provide the Nortel Enterprise Solutions business with the stability, scale and breadth needed to help customers compete and drive their businesses.
Nortel’s Enterprise Solutions portfolio has been the benchmark in the industry in a number of significant areas. Its unified communications solutions are delivering cost savings, efficiency gains and enhanced performance for customers around the world. Innovations in Nortel’s application and service portfolio are redefining the way in which companies can operate in a multi-vendor environment. And the Nortel data portfolio delivers exceptional performance combined with energy efficiency savings which make both sound economic and environmental sense.
If you have any questions please don’t hesitate visit www.nortel.com/restructuring for the latest news and information on all of Nortel’s restructuring announcements.
Thank you for your business and continued support.
