Nokia Siemens Networks will acquire the majority of Motorola’s wireless network infrastructure assets for US $1.2 billion in cash. The deal gives Nokia Siemens Networks incumbent relationships with more than 50 operators and to strengthen its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone.
Based on revenue, with the addition of the Motorola wireless network infrastructure business, Nokia Siemens Networks will become the #3 wireless infrastructure vendor in the United States, the #1 foreign wireless vendor in Japan, and strengthen its current #2 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. 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 traction with LTE early adopters.
Motorola retains the iDEN business, substantially all the patents related to its wireless network infrastructure business and other selected assets. NSN gains cross-license to the IPR portfolio.
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 United States, China and India.
The companies expect to complete closing activities by the end of 2010. Nokia Siemens Networks and Motorola also are exploring a global relationship in the public safety arena. This relationship would combine Motorola’s leadership in providing solutions to public safety organizations with Nokia Siemens Networks’ commercial LTE solutions.
“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. Nokia Siemens Networks will see the benefits of a deal that is expected to enhance profitability and cashflow and to have significant upside potential.”
“We are pleased to be able to add new relationships with some customers, and reinforce our position with others,” said Suri. “I believe the addition of Motorola’s Networks business will significantly strengthen our worldwide presence, enhance our scale in the United States, Japan and other priority regions and reinforce our leadership position in the global wireless sector.”
“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.”http://www.nsn.com
http://www.motorola.com
- Earlier this month, Motorola outlined its plans to separate its Mobile Devices and Home businesses from its Enterprise Mobility Solutions and Networks businesses. The separation will be accomplished through a series of transactions in which the assets, liabilities and operations of the Mobile Devices and Home businesses on a global basis will be transferred to a new company called Motorola SpinCo.
- In July 2009, Ericsson won the bid to acquire Nortel’s CDMA and LTE assets in North America in a deal valued at US$1.13 billion in cash. Ericsson’s bid prevailed in the auction process initiated by Nortel. The deal closed later in the year. In March 2010, Ericsson completed its acquisition of Nortel’s North American GSM business.
