Winning bidder for Nortel’s Enterprise business to be announced today. Avaya, Siemens ?

by Jeff Wiener on September 11, 2009

court_gavel4At some point today, barring some major complication, the winner of the Nortel Enterprise (Corporate Networking) business will be announced. It appears that there are 2 companies bidding. Avaya has made a $475 Million stalking horse bid, and Siemens Gore will be submitting a counter bid. Early rumors were that there were 3 bidding firms, Mattlin Patterson or Ciena rumored to be the third.

It also looks like there were some complications during the day Thursday with Verizon going to court to oppose Avaya’s bid on U.S. national security grounds. “Verizon says it has purchased equipment from Nortel that is now in use by virtually every arm of the U.S. federal government, including the military, anti-terror units and 911 call centres.”

I’m wondering what Verizon is hoping to get out of such a claim ? Fair enough – The US federal government is using Nortel hardware in many of their operations. Nortel’s bankruptcy, and Avaya (or Siemens) acquiring these assets will pose a threat to US national security, but, what exactly is Verizon hoping to accomplish with such a claim ? Nortel is bankrupt. The assets are being sold to the highest bidder. Someone is going to acquire these assets, and hopefully, provide continued support to the current customer base.

This decision … to acquire and take on the number 1 phone system manufacturer and morph the staff, channel, products, engineering into one cohesive unit … That takes a savvy business team with a very deep understanding of the business, business model, and opportunities for success. And to parlay that into a new, successful business model – well, the acquiring firm certainly has their work cut out for them.

Hopefully history will prove that this team made the right decision. Stay tuned – I will be posting my thoughts and end result at the end of the day.

More: My prediction is that this thing will sell for $825 Million. Just a wild guess really. What do you think ? Who ? How much ?

Written by: Jeff Wiener. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Identi.ca, or Friendfeed

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Who Wins Enterprise?
September 11, 2009 at 6:45 am

{ 42 comments… read them below or add one }

Bob Rice September 11, 2009 at 7:34 am

I think Siemens will end up acquiring Nortel’s business unit. I agree with the $825 figure (or even slightly higher)

Annon September 11, 2009 at 7:37 am

MY guess is for $900 Million

susan gores September 11, 2009 at 7:57 am

I feel that neither siemens nor Avaya will get thru this bid ?? Howwz it??

Ram Meravala September 11, 2009 at 9:06 am

I feel SEN is desparate to win this bid !!! And SEN will win….! My guess is not more than $800 Million

msjordan September 11, 2009 at 9:14 am

avaya can not afford to offer a high price ,otherwise they are going to collapse in a few years. because they just want Nortel customers not the business. But siemens wants the product and take the leadership in VoIP world.

I hope SIEMENS wins.

ksee00 September 11, 2009 at 10:05 am

i hope siemen will emerge the winner…

Ron Cooper September 11, 2009 at 10:51 am

msjordan I agree Siemens wants the business and products. probably the best bet for existing customers also. $800 + if Avaya can stay even that long… War chest issue..$$$$

Dale September 11, 2009 at 11:20 am

I agree with above post the best solution for existing customers would be Siemens, if Avaya gets in to deep financially it will ruin them.

Stacyjo4 September 11, 2009 at 12:28 pm

As a Nortel partner I can only hope Siemens pulls it out – I think it will go in the high 900s range.

Ron Cooper September 11, 2009 at 1:23 pm

I did not say it was not worh more…bidding ends when last completive bidder meets the end of financial means…… war chest ..$$$$$

Fritz September 11, 2009 at 1:53 pm

Ich denke 1 Billion Euro grins

Ericsson September 11, 2009 at 2:02 pm

Next year we buy all !

Ron Cooper September 11, 2009 at 2:32 pm

yes but I do no think so. lol

Brazilian Fox September 11, 2009 at 2:51 pm

The only good option for market and customers is Siemens. If not next year we will see Avaya’s Chapter 11. Hey Ericsson you are out of this market for years. But that was funny.

Brazilian Fox September 11, 2009 at 2:53 pm

Are There any news? How is the auction going? Is it finished? Is there blood in the ground?

Ansari A. September 11, 2009 at 2:53 pm

I think Seimens would be appropriate bidder and will be helpful for all the satkeholder , like partner and employees , as Aavaya has evrery things in thier kitty except data Euiqments, Avaya wants Nortel customer and partner , so they will phase put most of the Competing Products which has been built by Nortel ‘s R&D Team …..lets hop for the best .

Fritz September 11, 2009 at 3:13 pm

@Ericsson I think if Avaja wins Soni take Ericsson alone becouse i see them together in my office

Mister Bell canada September 11, 2009 at 3:29 pm

i hope Siemen win’s the derby, why? because they will continue to develop the Nortel portfolio, Avaya want’s the market period, so they will develop a gateway to transfer Nortel customer to their own equipment

George Ross September 11, 2009 at 3:51 pm

NORTEL fed my family for 14 years. I was given many, many opportunities. Met GREAT folks from around the world. Proud to have been part of it. If Siemens wins, my loyalty will follow NORTEL.

Long Live NORTEL!!

vince September 11, 2009 at 4:41 pm

Hy I do not understand why not to support Avaya. Are you sure Avaya is to be in chapter 11? This is a bloody shame you guys want to be Siemens the final winner. Are you sure Siemens Gorehas more cash than Avaya? I do not thnk so.

iceman September 11, 2009 at 5:26 pm

My guess and hope is for SEN to pull it off, Avaya as said only want the customers and not the Nortel people, Nortel has some great products the world just doesnt know about them.

Terri September 11, 2009 at 5:37 pm

Where is Bill Gares when you need him? M.S. could buy Nortel and get the technology they need….

Samy September 11, 2009 at 6:26 pm

Are there any news, yet?

Jeff Wiener September 11, 2009 at 6:29 pm

No. No news yet.

Jeff

the nortel guy September 11, 2009 at 6:33 pm

any news yet? the anticipation is driving me nuts. I work in a product development lab that integrates NT products with other software. NT has some amazing products. Most recently, this thing called ACE and a new software-based pbx called the SCS500. In my opinion, it would be a shame to see them go. If Avaya wins, it’s likely the death of the ACE product because they already have a product called Aura which does about the same thing. However, I guess they could sell the ACE technology to someone else.

Telphony September 11, 2009 at 6:35 pm

There is another bidder in the process and the bidding will eclipse 1 Billion. Neither Avaya or Siemens will win the auction.

Avaya Fan September 11, 2009 at 6:41 pm

Go Avaya!

the nortel guy September 11, 2009 at 6:43 pm

another bidder? Big Blue? LOL… well.. it was talked about at one time. And, Sam P. certainly has the cash. 😀

Avaya Fan September 11, 2009 at 6:48 pm

Go Avaya! Avaya wants nothing more than to provide best in class products and services to the customers of both Avaya and Nortel.

Telphony September 11, 2009 at 6:53 pm

The other bidder is not big blue and is a serious contender.

Moh September 11, 2009 at 7:07 pm

I think a private equity firm is the winning bidder and they will pay in the range of 800-950 USM. This is the only way the company and the products would survive and emerge again as a great company. It is a shame to see how much money this company has lost. Only bay networks was around 8 billions…

vince September 11, 2009 at 7:10 pm

so any news? Go Avaya go

tommy September 11, 2009 at 7:25 pm

No. No news yet.

Brazilian Fox September 11, 2009 at 7:47 pm

Any news?

Brazilian Fox September 11, 2009 at 7:54 pm

The winner is…….

Frustrated September 11, 2009 at 8:08 pm

Looks like no news this weekend. Mark Evans is reporting a Monday oral examination of Verizon’s protest at 1 PM.
http://www.allaboutnortel.com/2009/09/11/a-delay-in-the-auction-process/#comments

Bengal Tiger September 12, 2009 at 6:01 am

Go Siemens Get it! You are the number 2 !

Cakkes September 12, 2009 at 9:12 am

So far based on the information and news that I gathered, Verizon’s protests was only directed to Avaya winning the auction and not if Siemens won. So if it was Siemens who won, why not just announce it and all the fuss with the issue with Verizon all goes away? Isn’t this an indication that Avaya may have one already? This is just all speculation of course.

Heather Gardner September 12, 2009 at 4:30 pm

Does anyone know who the supposed serious contender is? Oh the suspense!

Jeff Wiener September 13, 2009 at 9:21 am

Heather – the serious contender is considered to be Avaya and Siemens, although Siemens has not publicly stated their intention to bid.

Jeff Wiener September 13, 2009 at 9:22 am

Interesting thought. Who do you think will win the auction if not Avaya or Siemens ?

Jeff Wiener September 13, 2009 at 9:23 am

Terri – Microsoft’s buying Nortel would be quite concerning. Don’t you think ? Or, were you joking.

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