DOW JONES NEWSWIRES
Nortel Networks Corp. (NRTLQ) has agreed to sell certain assets related to the development of next-generation packet core network components to Hitachi Ltd. (HIT) for $10 million.
The assets being sold include software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology. The sale excludes legacy packet core components for Nortel's GSM and UMTS businesses.
The deal is expected to close before the end of the year.
The telecom-equipment company filed for bankruptcy protection in January and has been selling off assets to several technology companies as part of that process. The next big auction is for Nortel's optical and ethernet division, which is scheduled for Nov. 13. Ciena Corp. (CIEN) has entered a "stalking-horse" agreement to buy the division in a $521 million deal.
-By Judy McKinnon, Dow Jones Newswires; 416-306-2100; judy.mckinnon@dowjones.com