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NSN to Buy Moto's Wireless Biz for $1.2B

Nokia Siemens Networks agrees to buy most of Motorola's wireless infrastructure business for $1.2 billion

Michelle Donegan

July 19, 2010

2 Min Read
NSN to Buy Moto's Wireless Biz for $1.2B

In a deal that's been widely anticipated during the past few days, Nokia Networks (NSN) has agreed to buy most of Motorola Inc. (NYSE: MOT)'s wireless infrastructure business for $1.2 billion in cash.

Specifically, NSN will acquire the business associated with Motorola's GSM, CDMA, WCDMA, WiMax, and Long Term Evolution (LTE) products and services. Motorola will keep its iDEN business, and other selected assets, as well as "substantially all the patents" related to the wireless network infrastructure business.

The deal, which was first rumored last week, will give Nokia Siemens a stronger presence in the US and Japan, as well as stronger positions at certain operator customers, including China Mobile Communications Corp. , Clearwire LLC (Nasdaq: CLWR), KDDI Corp. , Sprint Corp. (NYSE: S), Verizon Wireless , and Vodafone Group plc (NYSE: VOD). (See Rumor: NSN Wants a Piece of Motorola.)

NSN says the deal will give it "incumbent relationships with more than 50 operators" globally.

About 7,500 employees will transfer to NSN when the deal is completed, as well as research and development sites in the US, China, and India.

The transaction is expected to close by the end of 2010.

If the deal closes successfully, it will give NSN the extra market muscle in the US that it's been craving. Previously, NSN tried to bolster its North American presence by acquiring assets from Nortel Networks Ltd. , but was outbid in two separate auctions. (See NSN Hopes Dashed as Ciena/Nortel Deal OK'd and Ericsson Delivers Knockout Blow to NSN.)

This time, NSN will be hoping for a clear run and a successful conclusion. (See Reader Poll: NSN's Best US Fit.)

Look out for further Light Reading coverage of this deal and its implications for the market.

— Michelle Donegan, European Editor, Light Reading Mobile

About the Author(s)

Michelle Donegan

Michelle Donegan is an independent technology writer who has covered the communications industry for the last 20 years on both sides of the Pond. Her career began in Chicago in 1993 when Telephony magazine launched an international title, aptly named Global Telephony. Since then, she has upped sticks (as they say) to the UK and has written for various publications including Communications Week International, Total Telecom and, most recently, Light Reading.  

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