Nokia Siemens Networks buys Motorola wireless networking assets from for $1.2bn
Nokia Siemens Networks is buying most of Motorola's wireless network infrastructure assets for $1.2bn in cash.
The deal is expected to make Nokia Siemens Networks the third largest infrastructure vendor in the US, and the biggest foreign vendor in Japan, as measured by revenue. The deal will also strengthen its position as the second largest wireless infrastructure company in the world.
Nokia Siemens Networks also expects to become the incumbent infrastructure provider to more than 50 operators and to strengthen its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone.
Motorola's wireless infrastructure business provides products and services for GSM, CDMA, WCDMA, WiMAX and LTE networks. It also makes WiMAX equipment, with 41 contracts in 21 countries, has 30 active CDMA networks in 22 countries, and more than 80 GSM networks in 66 countries
Approximately 7,500 employees are expected to transfer to Nokia Siemens Networks from Motorola's wireless network infrastructure business when the transaction closes, including large R&D sites in the United States, China and India.
Motorola keeps the iDEN business, almost all the patents related to its wireless network infrastructure business and other key assets.
“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. “We will use 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.”
Greg Brown, Co-CEO of Motorola, said: “This is great news for our customers, our investors and our people and will allow us to sharpen our strategic focus on providing mission- and business-critical solutions for our government, public safety, and enterprise customers.”
Richard Lynch, executive vice president and chief technology officer of Verizon, said: “Verizon views today's announcement as good news for the global wireless industry. This deal brings together two important Verizon suppliers; we look forward to our continuing work with Nokia Siemens Networks.”
The deal is expected to close by the end of the year, subject to regulatory approval.