14 DAY TRIAL // The recent rumors about a possible deal between Nokia Siemens Networks and Motorola proved to be true, as today the companies made public an agreement under which Nokia Siemens Networks will acquire the majority of Motorola’s wireless network infrastructure assets. Valued at $1.2 billion, the transaction is expected to be finalized by the end of 2010.
"This is an exciting acquisition that I believe has significant benefits for customers, employees and our shareholders," said Rajeev Suri, Chief Executive Officer of Nokia Siemens Networks. "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."
The transaction will allow Nokia Siemens Networks to establish business relationships with over 50 operators and to strengthen its position globally, particularly in the United States and Japan. The acquisition is expected to make Nokia Siemens Networks the third wireless infrastructure vendor in the United States, the number one foreign wireless vendor in Japan, and strengthen its current 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. "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."
About 7,500 Motorola employees will be transferred to Nokia Siemens Networks, including large research and development sites in the United States, China and India. Motorola will retain the iDEN business, the patents related to its wireless network infrastructure business and other assets.