UK networking equipment manufacturer Marconi Communications Plc anounced yesterday that it had agreed to pay 46m pounds ($75.4m) for the SDH/DWDM transport equipment business of Finnish telecoms manufacturer Nokia Oyj. The deal also includes an OEM agreement for the supply of the same kit back to Nokia. The two companies also said the deal entails a supplementary payment of up to 21m pounds ($34.4m) to Nokia ‘dependent on the future performance of the business, resulting in a potential total payment of 67m pounds ($109.8m).
The business being transferred includes the product range and the Synfonet brand name, which is sold to cellular operators, dedicated network companies and advanced fixed-line operators. It involves 120 Nokia staff currently employed at an R&D unit in Cambridge, UK. Marconi is a wholly owned subsidiary of the UK group General Electric Company Plc.
