I got this in my E-mail and since no one has mentioned it, hope I am not offending anyone by posting it. I seem to remember AAH.T as being one of the stocks in play last week.
Aastra Technologies to Acquire Assets of
Nortel Networks? Access Solutions Division
TORONTO, Ontario (December 13, 1999) 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©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.
For further information contact:
Mr. Allan Brett, V-P Finance & CFO
416-736-7070, ext. 360
abrett@aastra.com |
