Nokia Siemens Networks will acquire the majority of Motorola’s wireless network infrastructure assets for $1.2 billion. Motorola’s networks infrastructure business comes with 41 WiMAX contracts in 21 countries; 30 active CDMA networks in 22 countries; and a GSM installed base, with more than 80 active networks in 66 countries; and and excellent traction with LTE early adopters.
Approximately 7,500 employees are expected to transfer to Nokia Siemens from Motorola’s wireless network infrastructure business when the transaction closes, including large research and development sites in the United States, China and India. Motorola retains the iDEN business, substantially all the patents related to its wireless network infrastructure business and other selected assets.
As part of the transaction, Nokia Siemens expects to gain incumbent relationships with more than 50 operators and to strengthen its position with China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone.
With this acquisition, Nokia Siemens expects that based on revenue, with the addition of the Motorola's business, it will become the No.3 wireless infrastructure vendor in the United States, the No.1 foreign wireless vendor in Japan, and strengthen its current No.2 position in the global infrastructure segment.
“As customers look to transition from CDMA networks to next generation technologies, the addition of the Motorola wireless network infrastructure business is targeted to ensure that we are well placed to meet those needs,” said Bosco Novak, head of Customer Operations at Nokia Siemens Networks. “Together, we will utilize the combined strength of Nokia Siemens Networks’ TD-LTE solutions and Motorola’s WiMAX and LTE businesses, to better meet customers’ evolving technology and business needs.”
The companies expect to complete closing activities by the end of 2010, subject to customary closing conditions including regulatory approvals.