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Nokia Siemens Networks to acquire some wireless network assets of Motorola |
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Nokia Siemens Networks (NSN) has said that it will acquire some of the wireless network infrastructure assets of Motorola, a move that will strengthen its presence in the US and Japan, help it gain incumbent relationships with over 50 operators, and enlarge its footprint in CDMA.  Nokia Siemens Networks and Motorola, Inc. have jointly announced that they have entered into an agreement whereby Nokia Siemens Networks will acquire the majority of Motorola’s wireless network infrastructure assets for $1.2 billion in cash. Motorola will retain the iDEN business, substantially all the patents related to its wireless network infrastructure business, and other selected assets. The companies expect to complete closing activities by the end of 2010.As part of the transaction, Nokia Siemens Networks expects to gain incumbent relationships with more than 50 operators and to strengthen its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone. The company expects that based on revenue, with the addition of the Motorola wireless network infrastructure business, it will become the number three wireless infrastructure vendor in the United States, the number one foreign wireless vendor in Japan, and would strengthen its currently second position in the global infrastructure segment. Motorola’s networks infrastructure business provides products and services for wireless networks, including GSM, CDMA, WCDMA, WiMAX and LTE. This business is a market leader in WiMAX, with 41 contracts in 21 countries; has a strong global footprint in CDMA with 30 active networks in 22 countries; and a robust GSM installed base, with more than 80 active networks in 66 countries; and excellent traction with LTE early adopters. Around 7,500 employees are expected to transfer to Nokia Siemens Networks from Motorola’s wireless network infrastructure business upon the transaction closing, including large research and development sites in the United States, China and India. |
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