Nokia Siemens snaps up Motorola's gear business for $1.2 billion
19 July 2010
Nokia Siemens Networks today agreed to buy Motorola's telecommunications network equipment business for $1.2 billion in a deal that will make Nokia Siemens the second-largest mobile gear maker in North America.
An equal joint venture between Finland's Nokia Corporation and Berlin-based Siemens AG, Nokia Siemens Networks has been in talks for the past two weeks with Motorola, which wanted to sell its network-equipment business ahead of splitting the company into two publicly-traded companies. (See: Nokia Siemens in talks to buy Motorola's telecom-equipment business)
Nokia Siemens said that the acquisition will significantly strengthen its presence globally, particularly in the US and Japan and become the third-largest wireless infrastructure vendor in the US, the largest in Japan and strengthen its current No 2 position in the global infrastructure segment.
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.
Motorola's networks infrastructure business provides products and services for wireless networks, including GSM, CDMA, WCDMA, WiMAX and LTE.
This business is a market leader in WiMAX, with 41 contracts in 21 countries, has a strong global footprint in CDMA with 30 active networks in 22 countries, and a robust GSM installed base, with more than 80 active networks in 66 countries; and excellent traction with LTE early adopters.