Nortel has sold off its multi-service switching (MSS) business - one of its last remaining units - for $39m (£25.2m) to a consortium of private equity investors and a comms tech firm called Samnite Technologies.
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The deal takes the form of a stalking horse agreement in the North and South American and Asian business, and an asset sale agreement in EMEA.
The sale of MMS includes the associated data packet network and Shasta product groups.
The consortium between Samnite and Marlin Equity, called PSP Holding LLC, has undertaken to maintain all employees at the unit.
Nortel MSS general manager John Luszczek said: "Today's announcement is welcome news to all MSS customers, suppliers, partners and employees.
"The proposed transaction represents a clear and positive step forward and is a testament of our continued commitment to innovation and customer support that resulted in the creation of the business value evident by today's announcement," he added.