Bankrupt Nortel exited another unit, this time the GSM assets with Sweden’s Ericsson and Austria’s Kapsch acquiring it. Under the deal, Ericsson will acquire the assets for North America and Canada while Kapsch CarrierCom will acquire for remaining markets.

The new deal is structured as an asset sale at a cash purchase price of USD 70 million on a cash and debt free basis, subject to adjustments. The deal is subject to approval by courts in the US and Canada and customary regulatory approvals and other conditions. Additionally Kapsch will pay $ 33 million.

"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."

Ericsson gains increased GSM business from AT&T and T-Mobile. 330 employees of Nortel will come under Ericsson rolls. In 2008, the North American market contributed $ 400 million to Nortel’s GSM business. Ericsson’s GSM & CDMA operations in North America contributed $ 2.7 billion in 2008.

SEB Enskilda is acting as Ericsson's sole financial advisor in the transaction.