Telecom vendor Nokia Siemens Network today entered into a deal to buy majority of the US—based Motorola’s wireless network infrastructure for USD 1.2 billion.
The acquisition will enhance Finland—based Nokia Siemens Networks (NSN) capabilities in key wireless technologies, especially in the United States and Japan, a joint press release said, adding that the deal will give NSN a large global footprint in CDMA technology.
As far as the Indian market is concerned, NSN would get hold of Wimax technology, which is likely to come up in a big way here after the allocation of broadband spectrum to operators.
The companies expect to complete closing activities by the end of 2010 subject to customary closing conditions, including regulatory approvals.
“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.
“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.
“NSN will see the benefits of a deal that is expected to enhance profitability and cash—flow and to have significant upside potential,” he added.
Approximately 7,500 employees are expected to be transferred 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.