The CEO of a U.S. company that's purchased the last major unit of Nortel told CTV Ottawa Thursday that the capital is an integral part of the company's operations.

"Ottawa is a key cornerstone for the new business and most of the 600 people there are likely to keep their jobs," said Charlie Vogt in an exclusive interview with CTV Ottawa.

Vogt said GENBAND was the natural buyer for Nortel's Carrier VoIP Solutions, or CVAS unit.

He added he wasn't surprised no other companies put in a bid. He said other firms like Alcatel-Lucent have too much overlap with Nortel products

GENBAND currently has 400 employees and is based in Plano, Texas. Vogt says 30 per cent of his current staff is ex-Nortel employees.

"We know what we are getting into," he said.

Vogt expects changes to begin in early May and predicts he will spend $150 million to integrate the much larger CVAS into his company's operations.

CVAS has 2,200 employees globally; after integration is complete, Vogt expects about 20 per cent of the total head count to be let go.

However, Vogt insisted Ottawa will be one of the company's key research facilities, along with others in Texas, India and two in China.

He said given that Ottawa works on products that are key to his future plans, it is not an area where he will make many cuts.

"This unit is really the core of Nortel as a company. It has a history going back 100 years that makes it a complex takeover. I see us building and expanding on what is there," Vogt said.

He added the company is looking to sign a long-term lease to keep CVAS employees in Ottawa working at their current facility.

Vogt said the acquisition will make GENBAND the global market leader in most of its product lines with between 20 and 30 per cent market share.

"It's good to be number one and have everyone chasing us, but it's hard to stay number one," he said.

With a purchase price of $182 million, analysts say GENBAND got a bargain price for the unit. Vogt said it was a fair price for the business, which had more than $200 million in sales during its third quarter.

The deal will go before the courts for approval next Wednesday.