EADS and Nortel Networks Redefine their Alliance in Telecommunications
Paris, 11 September 2001
European Aeronautic Defence and Space Company (EADS) and Nortel Networks (NYSE/TSE: NT) have entered into a series of agreements to realign their telecommunications operations and business focus in key markets.
The agreements relate to the following:
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The transfer to EADS Defence and Security Networks (EDSN) of Cogent Defence Systems, a UK leader in defence and security telecommunications systems and currently a division of a Nortel Networks' UK subsidiary. The agreement also covers the transfer to EDSN of EADS' current German based communication networks division, DASA Com Networks, which specialises in defence tactical networks. These transfers are subject to usual regulatory approvals and other pre-conditions, the satisfaction of which is currently underway and expected to be completed in the next 60 days.
These transactions are part of EADS' plans to strengthen its telecommunications business, created in March 2001 within the EADS Defence & Civil Systems Division, which focuses on defence and security markets. It aims to turn EDSN, an EADS subsidiary in which Nortel Networks is a shareholder, into a global leader in telecommunications for defence and security systems based on civilian technologies.
Nortel Networks will continue to support the defence business through its relationship and stake holding in EDSN but has recognised that a more specialist approach to the defence market will benefit Cogent and its customers. -
The transfer to EDSN of the IP Telephony M6500/Succession activity from Matra Nortel Communications (MNC), a Nortel Networks subsidiary in which EADS is a shareholder. EDSN will assume responsibility for the M6500 product and technology, including its path to Internet Protocol (IP) telephony. This is a core technology of EDSN as it is at the heart of its security solutions.
According to Tom Enders, Member of the EADS Executive Committee and Head of the EADS Defence and Civil Systems Division: "This agreement is a big step forward for our telecoms group and its growth objectives. It provides improved access to key technologies, particularly in the field of IP solutions through controlling the development path of its own product lines, and strengthens the position in major European markets, primarily Germany, France and the UK. The time is right for military applications of civilian technologies and products and our customers will benefit."
"Nortel Networks strategic goal is to support our service provider and enterprise customers, enabling them to capitalise from the high performance Internet through our industry leading Optical Internet, Wireless Internet and Intelligent Internet platforms," said Pascal Debon, President, Nortel Networks, Europe, Middle East and Africa. "France remains a vital market for Nortel Networks, where we will continue to invest and drive our business forward."
With revenues amounting to EUR 24.2 billion and a workforce of 100,000, EADS European Aeronautic Defence and Space Company is the largest European aerospace company and the No 2 worldwide. It is active in the sectors of comercial aircraft, helicopters, space, military transport and combat aircraft as well as defence technology and services. Among others, EADS holds 80 percent of Airbus, 75 procent of the space company Astrium, 100 percent of the helicopter manufacturer Eurocopter, 43 percent in the Eurofighter programme and 37,5 percent in the missile company MBDA in Formation.
Nortel Networks is a global leader in networking and communications solutions and infrastructure for service providers and corporations. The company is at the forefront of transforming how the world communicates, exchanges information and profits from the high performance Internet through capabilities spanning the Optical Internet, Wireless Internet, Intelligent Internet and IP (Internet Protocol) technologies and services. Nortel Networks does business in more than 150 countries and can be found on the Web at www.nortelnetworks.com.
| Press contacts: | |
| EADS | |
|
Roland Sanguinetti tel : 33 (0)1 42 24 24 26 presse@eads.net |
Brigitte Faure EADS Defence & Security Networks tel : 33 (0)1 34 60 71 70 brigitte.faure@eads-dsn.com |
| Nortel Networks France | |
|
Michel Syka tel : 33 (0)1 34 60 76 54 sykam@nortelnetworks.com |
Samuel Beauchef Fleishman-Hillard tel : 33 (0)1 55 26 40 57 beauches@fleishman.com |
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