Sells Layer 4-7 delivery products to Radware
One month into a restructuring of its business, networking and communications equipment vendor Nortel Networks Corp is to sell off parts of its application delivery product line to Radware Ltd.
The Canadian company finally went into Chapter 11 bankruptcy protection on January 14, so it could continue operating while it restructures its finances, although it has been undergoing a restructuring of one form or another since mid way through 2005.
As part of the divestment, Radware will take ownership of the 510 and 610 Nortel Application Accelerators, various Nortel Application Switches and the 5000 Virtual Services Switch.
The company said it had initiated discussions with Radware in late 2008, and “while Radware would assume ownership, product development and outstanding warrantees, the products would still be available and promoted by Nortel in an OEM relationship with Radware”.
It is the second time the application switch product line has changed hands. Nortel bought in the systems in October 2000 by way of its acquisition of Alteon WebSystems Inc.
Radware also plans to take on certain employees of the Candian communications equipment supplier. Nortel employs 95,000 workers around the world, with about 2,000 of those being UK-based.
Joel Hackney, enterprise president of Nortel said the company would “ remain focused our enterprise business that comprises Unified Communications, real time and wireless networking, security and integrated applications.