Nokia Siemens snaps up Motorola's wireless networks for $1.2 billion

by Steven Mostyn - Jul 20 2010, 04:39

Nokia Siemens Networks has this week purchased Motorola’s wireless network equipment unit for $1.2 billion USD, an acquisition that’s expected to expand the joint venture’s customer base by around 50 million people.

The deal, which was officially announced on Monday, will see Nokia Siemens taking control of various manufacturing facilities across all leading wireless networks, including the likes of GSM, CDMA, WCDMA, WiMAX, and LTE.

However, while Motorola is parting ways with its network manufacturing business, the American handset specialist will retain its wireless patent portfolio (granting Nokia Siemens a cross-license in the process), as well as its iDEN trunked wireless system, which is used by U.S. carriers such as Sprint Nextel.

Once full regulatory approval has been secured and the deal has been formally closed – which will likely be towards the end of 2010 – some 7,500 Motorola employees from the U.S., China and India will be shuffled over into the Nokia Siemens Network family. No layoffs are planned.

“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,” commented Rajeev Suri, CEO of Nokia Siemens Networks.

As a result of the acquisition, Nokia Siemens expects to gain “incumbent relationships” with more than 50 operators while strengthening its position with the likes of China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone.

Around the Web