Nokia Siemens Networks and Motorola have entered into an agreement that should see Nokia Siemens Networks acquiring the majority of Motorola's wireless network infrastructure assets for $1.2 billion later this year. The deal doesn't include Motorola's iDEN 'push-to-talk' business, the majority of its wireless network infrastructure patents and certain other assets.
This agreement will enable Nokia Siemens Networks to become the third-largest wireless infrastructure vendor in the United States and the largest foreign wireless vendor in Japan. It'll also strengthen its position as the second-largest player in the global infrastructure segment.
Rajeev Suri, Chief Executive Officer of Nokia Siemens Networks, said "This is an exciting acquisition that I believe has significant benefits for customers, employees and our shareholders. 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."
Approximately 7,500 employees are expected to transfer to Nokia Siemens Networks from Motorola's wireless network infrastructure business when the transaction is completed.