Media reports indicate that Radware is poised to acquire Nortel's Metro Ethernet Networks unit for $30-50 million.

Despite the global economic recession, Radware has managed to retain $137.4 million in cash, which is comprised of both short and long-term investments.

Nortel currently maintains four business divisions, one of which competes against Radware, Cisco Systems and F5 Networks. The divisions include the Carrier Networks segment (wireline and wireless networks), Solutions (enterprise communications), Metro Ethernet Networks (carrier ethernet switching and multi-service switching) and Global Services, which provides network implementation services.

The Canada-based firm, which is currently experiencing a significant decline in wireless sales, recently announced plans to divest from its metro Ethernet networks business after posting a $3.4 billion loss for its third-quarter results. The sale, along with a series of layoffs, was apparently designed to bolster Nortel's plummeting stock value.

"Over the next two years we expect conditions to remain very tough, both competitively and because of the current economic/financing malaise," wrote Avi Cohen of Avian Securities in a statement quoted by the Toronto Globe and Mail.

Cohen had previously expected Ericsson, Huawei, Nokia Siemens and Cisco Systems to bid for Nortel's network unit. X

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