Radware is to sign an asset purchase agreement with Nortel to acquire certain assets related to Nortel's Layer 4-7 Application Delivery Business.
Nortel added the application switch product line in October 2000 by way of its corporate acquisition of Alteon WebSystems, and it is planned to be offered under the merged Radware Alteon brand.
Radware is also planning to offer a five-year support product plan to all existing Alteon customers, thus securing the investment of these customers in the technology. It will also take on certain employees who will be integrated into the Radware team with a specific focus on products under the Radware Alteon brand.
Nortel has filed the asset purchase agreement with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code.
A similar motion for the approval of the bidding procedures has been scheduled with the Ontario Superior Court of Justice. Consummation of the transaction is subject to higher or otherwise better offers, approval by the United States Bankruptcy Court for the District of Delaware, and the Ontario Superior Court of Justice and the satisfaction of other conditions.
Roy Zisapel, CEO of Radware, said: “We believe acquiring Nortel's Application Delivery Business is a strategic move that will directly benefit Radware and Nortel's customers. We are committed to making this transaction seamless for existing Nortel customers and intend to take the necessary steps to ensure zero disruption to their business when the transfer occurs.”