LG-Nortel, Accton to establish joint venture in North America
To offer voice and data offerings for SMB and enterprise market
LG-Nortel, the joint venture formed by Nortel Networks and South Korean LG Electronics, and Accton Technology, a Taiwanese global telecommunications equipment company, have signed an agreement to form a joint venture that will offer voice and data offerings for North American small and medium businesses (SMBs) and large enterprises.
Under the agreement LG-Nortel will own a 60% share in the joint venture and Accton Group will own the remaining 40%. The new company will be tentatively named Edgecore Networks and will be established by mid February from headquarters in Irvine, California.
According to LG-Nortel, the joint venture will combine the SMB voice and data product expertise of LG-Nortel with Edgecore Networks' marketing and sales capability, SMB channels, and logistics skills. Both companies will cooperate in every aspect of their businesses including R&D, manufacturing, marketing, new business development and brand use.
Leith Tessy, chief operating officer of LG-Nortel, said: "The establishment of this joint venture will significantly enhance LG-Nortel's presence in North America. Businesses have more complex communications challenges than ever, and the combination of our companies' respective strengths will provide an unparalleled opportunity to help them meet those challenges."
Huang, chairman of Accton Group, said: "The demands of North American customers are directly connected to the overall trend towards global communication. The brand value and voice platform technology that LG-Nortel provides, paired with Accton's distribution and manufacturing capacity, and our local network reach, will make this joint venture a powerful combination that will deliver significant benefits for companies across North America."