Nokia Siemens Networks and Motorola have entered into an agreement under which Nokia Siemens will acquire the majority of Motorola’s wireless network infrastructure assets for $1.2bn in cash.
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.
Nokia Siemens Networks expects that based on revenue, with the addition of the Motorola wireless network infrastructure business, it will become the #3 wireless infrastructure vendor in the US, the #1 foreign wireless vendor in Japan, and strengthen its current #2 position in the global infrastructure segment.
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 research and development sites in the US, China and India. Motorola retains the iDEN business, substantially all the patents related to its wireless network infrastructure business and other selected assets.
Nokia Siemens Networks and Motorola also are exploring a global relationship in the public safety arena. This relationship would combine Motorola’s offerings to public safety organisations with Nokia Siemens Networks’ commercial LTE offerings.
Bosco Novak, head of customer operations at Nokia Siemens Networks, said: "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.
"Together, we will utilise 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."
