Nokia Siemens buys Motorola wireless

Nokia Siemens Networks has agreed to acquire Motorola’s wireless network infrastructure assets for US$1.2 billion in cash.

“This is an exciting acquisition that I believe has significant benefits for customers, employees and our shareholders,” said Rajeev Suri, CEO 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.”

As part of the deal, Nokia Siemens expects to gain relationships with more than 50 operators and to strengthen its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone.

It says that based on revenue, with the addition of Motorola’s business, it will become the top third US wireless infrastructure vendor, the number one foreign wireless vendor in Japan, and strengthen its current second position in the global sector.

Suri continued, “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.”

Highlights of the deal include:

• Transaction expected to significantly strengthen Nokia Siemens Networks’ presence globally, particularly in the United States and Japan.
• Nokia Siemens Networks targeting to gain incumbent relationships with more than 50 operators and strengthen relationships with others.
• Acquisition to enhance position of Nokia Siemens Networks in key wireless technologies; will give company large global footprint in CDMA.
• Motorola retains the iDEN business, substantially all the patents related to its wireless network infrastructure business, and other selected assets.
• The companies expect to complete closing activities by the end of 2010.