NSN Buys Motorolas Infrastructure Business

Nokia Siemens Networks (NSN) is to acquire the majority of Motorola’s wireless network infrastructure assets for $1.2bn (£800m) in cash, in order to increase its presence in N. America and Japan. The deal is expected to complete by the end of the year. As part of the transaction, NSN says it 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.

Approximately 7,500 employees are expected to transfer to NSN from Motorola’s wireless network infrastructure business when the transaction closes, including large research and development sites in the US, China and India. Motorola retains the iDEN (Integrated Digital Enhanced Network) business, substantially all the patents related to its wireless network infrastructure business and other selected assets.

“This is an exciting acquisition that I believe has significant benefits for customers, employees and our shareholders,” says NSN CEO, Rajeev Suri. “Motorola’s current customers will continue to get world-class support for their installed base and a clear path for transitioning to next generation technologies, while employees will join an industry leader with global scale and reach. Nokia Siemens Networks will see the benefits of a deal that is expected to enhance profitability and cash-flow and to have significant upside potential.”

Motorola’s networks infrastructure business provides products and services for wireless networks, including GSM, CDMA, WCDMA, WiMAX and LTE. The 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.

NSM expects that, based on revenue, with the addition of the Motorola wireless network infrastructure business, it will become the No.3 wireless infrastructure vendor in the US, the No.1 foreign wireless vendor in Japan; and will strengthen its current No.2 position in the global infrastructure segment.

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