Talks regarding the deal in which Radware Ltd. (Nasdaq: RDWR; TASE: RDWR) agreed to buy Nortel's Layer 4-7 Application Delivery Business lasted several months, and Radware's final price dropped significantly as Nortel filed for bankruptcy protection in Delaware.
On Thursday, Radware reported that it bought the application delivery products, and will also offer support for the products.
Papers filed by Nortel with the bankruptcy court show that Radware is set to pay $17.6 million. Although Nortel did not disclose the original offer price by Radware, before Nortel's bankruptcy filing, a "Globes" report the bankruptcy week before stated that Radware was looking to pay $30-50 million.
A senior Radware source said that Nortel had already examined additional offers for the sale of the division from other bodies but preferred Radware's offer. In filing papers to the court, Nortel asked for speedy approval of the sale of the division to Radware to prevent the price falling further.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2009
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