Application delivery solutions specialist Radware has pounced on parts of Nortel's Layer 4-7 Application Delivery business for an undisclosed sum under what is known as a 'stalking horse' asset purchase deal, a strategic agreement that prevents any other interested parties from putting in a lower bid.
Under the terms of the agreement Radware will take control of Nortel's Layer 4-7 application switch product line - which Nortel itself acquired in 2000 with the purchase of Alteon - the intellectual property relating to the kit, inventory, some key contracts and Nortel personnel.
Discussions over the future of the business unit have been in progress since late 2008, according to Nortel, which will continue to make product available through an OEM relationship.
Radware has already announced its intent to rebrand the Nortel gear as Radware Alteon and is making plans to invest in research and development across the product line.
"We believe [this] is a strategic move that will directly benefit Radware and Nortel's Alteon customers," said Radware CEO Roy Zisapel, who insisted that Radware was committed to a smooth transfer for customers and partners.