Ericsson agrees to buy Nortel switch unit for $65 million

Ericsson AB, the world's largest maker of wireless networks, agreed to pay $65 million in cash for the switch unit of insolvent Nortel Networks Corp.

Ericsson said it acquired the switch unit on a debt-free basis in a Nortel auction. The purchase is subject to approvals from regulators and bankruptcy courts the company said in a statement.

Ericsson has bought Nortel assets at least four times in little more than a year as the Stockholm-based company expanded both its mobile networks and its North American operations. Toronto-based Nortel started selling businesses after filing for protection from creditors in the U.S. and Canada in 2009.

Ericsson beat bids from Nokia Siemens Networks and MatlinPatterson Global Advisers LLC to acquire Nortel's wireless equipment unit for $1.13 billion In July 2009.

SEB Enskilda advised Ericsson as it sought to buy the unit.