According to Globes, Israel's version of the Wall Street Journal, RADWare will purchasing Nortel's layer 4-7 applications switching assets:
As part of the intended acquisition, Radware will take on Nortel's application delivery products, and offer them under a merged brand, Radware Alteon. From the onset, Radware plans to significantly invest in service and support for the existing Nortel/Alteon customer base as well as augment its current global support infrastructure with all of the necessary resources to guarantee world-class support for these customers.
The assets to be acquired under the agreement include Nortel's Layer 4-7 application delivery products, intellectual property, certain tangible assets and inventory and certain service contracts. Radware also plans to take on certain employees who will be integrated into the Radware team with a specific focus on products under the Radware Alteon brand.
Radware CEO Roy Zisapel said, "We believe acquiring Nortel's Application Delivery Business is a strategic move that will directly benefit Radware and Nortel's Alteon customers. Our ultimate goal is to provide them with a stronger, integrated product backed by world-class support and a globally-focused organization." Zisapel added that he hope to make the transaction would be seamless and not cause any disruption to customer businesses.
Radware will also support the products by offering a 5-year support product plan, in order to secure the investment of the customers in Nortel/Alteon technology. Radware said it also intends to invest in these products by continuing to sell them and invest in their development.
You can read about it here. Of course, that still doesn't answer what will happen with Nortel's enterprise telephony division, the only bright spot for the company in November's earnings.