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Nokia Siemens Networks buys tech from MotorolaBy Hanleigh Daniels 20 July 2010 | Categories: news
Nokia Siemens Networks (NSN) and Motorola announced yesterday that the companies have entered into an agreement that will see NSN acquiring the majority of Motorola’s wireless network infrastructure assets for $1.2 billion (over R9 billion) in cash.
“This is an exciting acquisition that I believe has significant benefits for customers, employees and our shareholders,” said Rajeev Suri, chief executive officer of NSN. “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.”
About 7 500 employees are expected to join NSN from Motorola’s wireless network infrastructure business at the close of the agreement, which includes large research and development sites in the US, China as well as India. Motorola will however retain all the patents related to its wireless network infrastructure business as well as selected assests.
“Motorola is very proud of the operational and financial performance of our Networks business and its employees, who will now become a valuable addition to Nokia Siemens Networks. We are excited to have reached this agreement to combine our Networks team with such an industry leader,” said Greg Brown, Co-CEO of Motorola. “This is great news for our customers, our investors and our people and will allow us to sharpen our strategic focus on providing mission and business critical solutions for our government, public safety, and enterprise customers.”
The companies expect to finalise the transaction by the end of this year, subject to closing conditions such as regulatory approvals.
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