Nortel announced today that it has entered into an agreement with PSP Holding LLC, a special purpose holding entity to be fully funded by Marlin Equity Partners and Canadian-based Samnite Technologies, to sell its Multi Service Switch (MSS) business for US$39 million in cash.
The agreement includes the sale of all the assets associated with the MSS business, including the Data Packet Network and Shasta product groups. The deal also includes certain intellectual property related to the MSS business.
John Luszczek, General Manager of Nortel’s MSS business had this to say:
“Today’s announcement is welcome news to all MSS customers, suppliers, partners and employees. The proposed transaction represents a clear and positive step forward and is a testament of our continued commitment to innovation and customer support that resulted in the creation of the business value evident by today’s announcement. Throughout this process we will remain focused on providing our customers with the highest level of service, support and responsiveness that they have come to expect.”
Nortel announced last year that it would sell off all its businesses due to financial difficulties at the firm. Going forward Nortel will likely be remembered for its accounting scandals, lucrative management bonuses, and slow demise, rather than for the innovative solutions that it brought to market for more than 100 years.