Ericsson, the world's leading provider of technology and services to telecom operators has been selected as successful bidder to acquire certain assets of the Carrier Networks division of Nortel relating to Nortel's GSM business in the US and Canada.

The transaction comprises asset sale at a cash purchase price of US $70 million on a cash and debt free basis, subject to adjustments. Ericsson's bid for Nortel's GSM assets was made together with Kapsch CarrierCom AG of Austria.

According to the agreements, Ericsson is acquiring certain assets of Nortel's GSM business in North America while Kapsch is paying US $33 million to acquire most of the remaining assets outside North America.

Further, the agreement includes the transfer of important GSM business with North American operators such as AT&T and T-Mobile. Under the agreement Ericsson will offer employment to approximately 350 employees from Nortel. Nortel's North American GSM operations generated approximately US $400 million in 2008.

"Along with our recent acquisition of Nortel's CDMA and LTE assets, the transaction emphasizes Ericsson's commitment to the North American market and strengthens our position as a leading provider of telecommunications technology and services in the United States and Canada" said Hans Vestberg, incoming President and CEO of Ericsson. "Our Ericsson family will be once again enriched by the addition of the valuable Nortel employees."

Nortel announced bankruptcy earlier this year, post which various assets of the telecommunications service provider have been sold to the prospective bidders. Ericsson acquired the CDMA & LTE business, Avaya Inc announced purchasing of Nortel Networks Limited (NNL) and its subsidiaries, Nortel Networks' advanced wireless technology business was purchased by Nokia Siemens Networks; among others acquisitions.

The transaction is subject to approval by courts in the US and Canada and customary regulatory approvals and other conditions.