This morning, Nokia Siemens announced that it would acquire $1.2 billion in network infrastructure assets from telecom giant Motorola. As the press release states: “Motorola’s networks infrastructure business provides products and services for wireless networks, including GSM, CDMA, WCDMA, WiMAX and LTE. This business is a market leader in WiMAX, with 41 contracts in 21 countries; has a strong global footprint in CDMA with 30 active networks in 22 countries; and a robust GSM installed base, with more than 80 active networks in 66 countries; and excellent traction with LTE early adopters.” Some of the 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.
The biggest CDMA player in the U.S. — Verizon Wireless — released a statement saying, “This deal brings together two important Verizon suppliers; we look forward to our continuing work with Nokia Siemens Networks.” We’ve got the full press release after the bounce. More →
