Nortel Networks will integrate, sell and support Avici Systems' carrier-class core routers under a three-year strategic agreement. As part of this agreement, Avici and Nortel Networks plan to engage in joint marketing activities, solutions development and technology collaboration. These activities will initially be focused on the service management and operations integration necessary to deliver seamless convergence of multiservice networks over an IP/MPLS core, along with associated support for new IP/MPLS services. Avici products will be integrated under Nortel Networks Preside Management system for basic operations, administration, maintenance and provisioning support (OAM&P).
As part of the deal, Avici has granted Nortel Networks a warrant to purchase 800,000 shares of Avici common stock at a formula exercise price, which approximates US$8.00 per share. The warrant is exercisable after seven years, but the right to exercise the warrant may be accelerated if Nortel Networks achieves certain performance milestones. http://www.avici.com
- In June 2003, Avici Systems and Huawei Technologies have entered into an OEM agreement under which Huawei will sell Avici's routing products in China.
