For 1.2 Billion USD Cash – Nokia Siemens Networks to acquire Motorola wireless network infrastructure assets.

| July 19, 2010 | 22 Replies

The Telecom equipment vendor, Nokia Siemens is a joint venture between Nokia and Siemens AG. Today NSN announced that they will be acquiring certain wireless network infrastructure assets from Motorola for a sum of 1.2 BILLION US Dollars. CASH. Last year, Nokia tried to build a position in North America with the acquisition of Nortel, but was outbid and bought by Ericsson for 1.13 Billion USD (another Nortel asset bought by Cienna for 769 Million)

  • Deal expected to complete end of 2010
  • 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.
  • Transaction expected to significantly strengthen Nokia Siemens Networks’ presence globally, particularly in the United States and Japan.
  • Acquisition to enhance position of Nokia Siemens Networks in key wireless technologies; will give company large global footprint in CDMA.
  • based on revenue, with the addition of the Motorola wireless network infrastructure business, it will become the #3 wireless infrastructure vendor in the United States, the #1 foreign wireless vendor in Japan, and strengthen its current #2 position in the global infrastructure segment.
  • 7500 employees to transfer from Motorola to Nokia Siemens Networks
  • Motorola retains the iDEN business, substantially all the patents related to its wireless network infrastructure business, and other selected assets.

Snippet from the PRESS RELEASE

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.

“As customers look to transition from CDMA networks to next generation technologies, the addition of the Motorola wireless network infrastructure business is targeted to ensure that we are well placed to meet those needs,” said Bosco Novak, head of Customer Operations at Nokia Siemens Networks. “Together, we will utilize the combined strength of Nokia Siemens Networks’ TD-LTE solutions and Motorola’s WiMAX and LTE businesses, to better meet customers’ evolving technology and business needs.”



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Category: Nokia

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