NSN to Sell WiMax Biz
According to the agreement, NewNet, a portfolio company of private investment firm Skyview Capital LLC, would acquire the WiMax products, the related employees and assets, as well as active customer and supplier contracts. Financial terms of the deal were not disclosed.
About 300 NSN employees would transfer to NewNet, many of whom are located in suburban Chicago and Hangzhou, China. And remember, those 300 aren't included in the 17,000 jobs that NSN is cutting as part of its revamp. (See NSN Could Lose More Than 17,000 Staff, NSN Finally Seals $975M Moto Deal and NSN Expands in North America With Moto Buyout.)
The transaction is expected to close before Dec. 31, 2011.
Nokia Siemens last week announced an extensive restructuring program in an effort to cut €1 billion (US$1.3 billion) from its annual operating expenses by the end of 2013 and focus its business on mobile broadband (a term that, for NSN, doesn't include WiMax), services and customer experience management. As part of the program, the company said it plans to reduce its workforce by 17,000 employees and exit a number of businesses.
WiMax is one of the businesses that NSN had specified would either be sold or put into maintenance mode. (See NSN Unveils Its Kill List .)
For more of Light Reading coverage of NSN, please see these stories:
— Michelle Donegan, European Editor, Light Reading Mobile