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Nokia Siemens Networks buys some Motorola wireless assets for $1.2B

Monday, July 19, 2010
By Gina Roos

nokiasiemensnetworkslogoEspoo, Finland — Nokia Siemens Networks will buy the majority of Motorola’s wireless network infrastructure assets for $1.2 billion in cash, which will boost Nokia’s business in key wireless technology and expand its global footprint in CDMA. Under the agreement, Motorola (Schaumburg, Ill.) will retain the iDEN business, which includes “substantially all the patents related to the wireless network infrastructure business, and other selected assets.” The companies expect to complete the deal by the end of 2010.

The deal will significantly strengthen Nokia Siemens Networks’s presence globally, particularly in the U.S. and Japan, while gaining incumbent relationships with more than 50 operators and expanding its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone.

Nokia Siemens Networks expects that based on revenue, with the addition of the Motorola wireless network infrastructure business, it will become the number 3 wireless infrastructure vendor in the United States, the number 1 foreign wireless vendor in Japan, and strengthen its current number 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. In addition to its global footprint in CDMA with 30 active networks in 22 countries, Motorola’s business is a market leader in WiMAX, with 41 contracts in 21 countries, and has a large GSM installed base of more than 80 active networks in 66 countries and traction with LTE early adopters, according to Nokia.

“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, in a statement. “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 cash-flow and to have significant upside potential.”

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 do not expect the transaction to have any impact on Nokia Siemens Networks’ financial performance in 2010.

In addition, Nokia Siemens Networks and Motorola are evaluating a global relationship in the public safety arena, leveraging Motorola’s leadership in providing solutions to public safety organizations with Nokia Siemens Networks’ commercial LTE solutions.

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