Radware to Acquire Nortel's Layer 4-7 Application Delivery Business

Radware has signed an asset agreement with Nortel to purchase certain assets related to Nortel's (News - Alert) Layer 4-7 Application Delivery Business, according to the company.

 

Under the agreement, the assets to be acquired by the company are Nortel's Layer 4-7 application delivery products, intellectual property, certain tangible assets and inventory and certain service contracts.

 

Radware (News - Alert) is a provider of integrated application delivery solutions for business-smart networking. Roy Zisapel, CEO at Radware, said that the company believes the acquisition of Nortel's Application Delivery Business is a strategic move that will directly benefit Radware and Nortel’s [Alteon] customers.

 

Zisapel said the company is committed to making this transaction seamless for existing Nortel [Alteon] customers. In addition, the company also intends to take the necessary steps to ensure zero disruption to their business when the transfer occurs.

 

As part of the intended acquisition, Radware said that it plans to take on Nortel’s application delivery products and offer them under a merged brand, Radware Alteon.

 

Additionally, Radware plans to significantly invest in service and support for the existing Nortel [Alteon] customer base. The company said that it’ll augment its current global support infrastructure with all of the necessary resources to guarantee support for these customers. Radware also intends to offer a 5-year support product plan.

 

Radware said that it will take on certain employees who will be integrated into the Radware team with a specific focus on products under the Radware Alteon brand.

 

“This move is a positive one for both companies and their respective customers and partners,” said Lucinda Borovick, research vice president for Datacenter Networks at IDC (News - Alert).

 

Nortel added the application switch product line in October 2000 by way of its corporate acquisition of Alteon WebSystems.

 

Recently, Nortel filed the asset purchase agreement with the United States Bankruptcy Court for the District of Delaware and a motion seeking the establishment of bidding procedures for an auction. The auction allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code.