Nortel Networks in Global Asset Sale to Flextronics
August 22, 2005
Cleary Gottlieb is representing longtime client Nortel Networks on European aspects of its sale to Flextronics of manufacturing operations and related activities located in Canada, Brazil, France and Northern Ireland. The French portion of the deal closed on August 22.
At the French closing, Nortel sold its manufacturing operations, along with related property and support activities, and transferred 350 employees to Flextronics. Flextronics also acquired the goodwill associated with, and the right to benefit from, Nortel’s worldwide recognition as a lead manufacturer of network solutions.
As part of the overall global transaction, Nortel Networks and Flextronics entered into a four-year manufacturing services supply agreement, expected to represent $2.5 billion of Nortel’s annual procurement cost, as well as a three-year design services supply agreement.
Nortel, headquartered in Ontario, Canada, is a leading provider of networking and telecommunications services, infrastructure and equipment across the world. Flextronics is a leading supplier of electronic manufacturing services worldwide, with head offices in Singapore.