Mobile network equipment maker Nokia Siemens Networks has signed an agreement with Los Angeles California-based private investment Marlin Equity Partners for the sale of its Optical Networks business unit for undisclosed sum to focus on mobile broadband.
As part of the agreement, nearly 1,900 employees, mainly positioned in Germany and Portugal, will be shifted to the new firm.
Nokia Siemens Networks chief executive officer Rajeev Suri said that the firm’s strategic focus has enabled to concentrate its energyand investment in areas including LTE.
"This transaction builds on that momentum and aims to provide a new home for the Optical Networks business with the focus, resources and strategic flexibility to address the opportunities in the optical market," Suri said.
The transaction is further expected to transform Nokia Siemens Networks into a mobile broadband specialist, while offering both businesses the opportunity to focus investment and on their core segments.
Marlin Equity telecom sector operating partner Pat DiPietro said: "We plan to make necessary investments to deliver market-leading optical networking solutions and enhance the long-term value already provided to our global customer base."
Following the completion of transaction in first quarter of 2013, the new unit will be headquartered in Munich, Germany, and will be led by its existing management team with Herbert Merz as chief executive officer.