Aastra To Acquire Assets Of Nortel Networks' Access
Solutions Division
TORONTO, ONTARIO--Aastra Technologies Limited -(TSE: "AAH")
announced a definitive asset purchase agreement under which Aastra
will acquire certain assets of Nortel Networks' Access Solutions
Division relating to consumer and non-proprietary business CLASS
telephone sets for an estimated US $31 million. This business had
unaudited sales of US $110 million for the 9 months ended
September 30, 1999 (as prepared using Nortel Networks' accounting
policies under Canadian GAAP). Upon the closing of the
transaction Aastra intends to continue the design, development and
distribution of these products. The transaction is expected to
close in January 2000, and is subject to financing. Aastra has
retained Yorkton Securities Inc. and Sprott Securities Limited to
act as financial advisors in connection with the financing related
to this transaction.
The assets to be acquired include product manufacturing tools,
certain intellectual property, test equipment, contracts and
inventory. As part of the asset purchase agreement, Nortel will
assign contracts representing over 200 customers to Aastra. In
addition, Aastra will acquire the technology rights to partially
developed products, including Internet appliances and cordless
telephones. Also included in the acquisition are over 20 design
patents, and certain trademarks, including, Vista, PowerTouch,
Venture, Maestro, Nomad, Symphony, Prevue, Quick Touch and Jazz.
"We are pleased to have the opportunity to acquire these assets
from Nortel Networks which has over 100 years of heritage and a
track record in telephone design, development and marketing" said
Francis Shen, Chairman and CEO of Aastra. "Together with our Bell
brand in the U.S., also over 100 years old, and our Year 2000
business model, we are positioned to be a long term market leader
in the end-user communication terminals business."
"The Nortel Networks consumer and non-proprietary business
telephone product line is an ideal compliment to our current
products," said Anthony Shen, President and COO of Aastra. "The
partially completed screen-based Internet appliance and cordless
telephones are a perfect match with our current R&D effort.
Moreover, it is widely believed that these two categories are
likely to experience substantial market growth for the next five
years."
Nortel Networks is a global leader in telephony, data, wireless
and wireline solutions for the Internet. The Company had 1998
revenues of US$17.6 billion and serves carrier, service provider
and enterprise customers globally.
Aastra Technologies Limited develops and distributes
telecommunications equipment. Aastra offers a full line of
products ranging from Caller ID adjuncts to full-featured
communications systems. Aastra sells to the majority of the
telecommunication companies in North America. In the retail
market, Aastra has the exclusive license to use the
"BELL(r)Equipment-SONECOR" trademark for telephone sets and its
products are distributed to Wal-Mart, Circuit City, Radio Shack
and other mass retailers.
Vista, PowerTouch, Venture, Maestro, Nomad, Symphony, Prevue,
Quick Touch and Jazz are trademarks of Nortel Networks.
The Toronto Stock Exchange has neither approved nor disapproved of
the information included in this press release.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Aastra Technologies Limited
Mr. Allan Brett
V-P Finance & CFO
416-736-7070, ext. 360
abrett@aastra.com |
