Nokia Siemens Networks (NSN) is to acquire the majority of Motorola’s wireless network infrastructure assets for US$1.2 billion
NSN said it expects to see numerous benefits from the purchase, including gaining incumbent relationships with more than 50 operators that will 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.
NSN said the 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; maintains a robust GSM installed base, with more than 80 active networks in 66 countries; and has excellent traction with LTE early adopters.
Based on revenue, with the addition of the Motorola wireless network infrastructure business, NSN said it will become the third largest wireless infrastructure vendor in the US, the top foreign wireless vendor in Japan and strengthen its current second place position in the global infrastructure segment.
Around 7,500 employees are expected to transfer to NSN from Motorola’s wireless network infrastructure business, including large research and development sites in the US, China and India.
The cash purchase is expected to close by the end of the year.
Motorola will retain the iDEN business, all the patents related to its wireless network infrastructure business and other selected assets.
NSN chief executive Rajeev Suri said: “This is an exciting acquisition that I believe has significant benefits for customers, employees and our shareholders.
“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.”
Suri added: “We are pleased to be able to add new relationships with some customers, and reinforce our position with others.
“I believe the addition of Motorola’s networks business will significantly strengthen our worldwide presence, enhance our scale in the US, Japan and other priority regions and reinforce our leadership position in the global wireless sector.”
NSN head of customer operations Bosco Novak 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 NSN’s TD-LTE solutions and Motorola’s WiMAX and LTE businesses to better meet customers’ evolving technology and business needs.”
NSN and Motorola are also exploring a global relationship in the public safety arena combining Motorola’s experience providing solutions to public safety organisations with NSN’s commercial LTE solutions.