Nokia Siemens Networks Acquiring Motorola’s Wireless Network Assets For $1.2 Billion
Nokia Siemens Networks and Motorola, Inc. has announced that the two companies have entered an agreement. Nokia will spend $1.2 billion to acquire the majority of Motorola’s wireless network infrastructure assets for $1.2 billion in cash. Both companies expect the deal to close at the end of 2010. Full press release below:
Nokia Siemens Networks to Acquire Certain Wireless Network Infrastructure Assets of Motorola for USD 1.2 Billion
ESPOO, Finland and SCHAUMBURG, Illinois, July 19, 2010 /PRNewswire-FirstCall/ —
- 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.
Nokia Siemens Networks and Motorola, Inc. today jointly announced that the companies have entered into an agreement under which Nokia Siemens Networks will acquire the majority of Motorola’s wireless network infrastructure assets for USD 1.2 billionin cash. The companies expect to complete closing activities by the end of 2010, subject to customary closing conditions including regulatory approvals.
“This is an exciting acquisition that I believe has significant benefits for customers, employees and our shareholders,” said Rajeev Suri, Chief Executive Officer of Nokia Siemens Networks. “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.”
“Motorola is very proud of the operational and financial performance of our Networks business and its employees, who will now become a valuable addition to Nokia Siemens Networks. We are excited to have reached this agreement to combine our Networks team with such an industry leader,” said Greg Brown, Co-CEO of Motorola. “This is great news for our customers, our investors and our people and will allow us to sharpen our strategic focus on providing mission and business critical solutions for our government, public safety, and enterprise customers.”
As part of the transaction, Nokia Siemens Networks 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.
“We are pleased to be able to add new relationships with some customers, and reinforce our position with others,” said Suri. “I believe the addition of Motorola’s Networks business will significantly strengthen our worldwide presence, enhance our scale inthe United States, Japan and other priority regions and reinforce our leadership position in the global wireless sector.”
“Verizon views today’s announcement as good news for the global wireless industry,” said Richard J. Lynch, Executive Vice President and Chief Technology Officer of Verizon. “This deal brings together two important Verizon suppliers; we look forward to our continuing work with Nokia Siemens Networks.”
Nokia Siemens Networks expects that based on revenue, with the addition of the Motorola wireless network infrastructure business, it will become the #3 wireless infrastructure vendor in the United States, the #1 foreign wireless vendor in Japan, and strengthen its current #2 position in the global infrastructure segment.
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.
“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.”
Approximately 7,500 employees are expected to transfer to Nokia Siemens Networks 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.
The companies expect to complete closing activities by the end of 2010 and therefore do not expect the transaction to have any impact on Nokia Siemens Networks’ financial performance in 2010.
Nokia Siemens Networks and Motorola also are exploring a global relationship in the public safety arena. This relationship would combine Motorola’s leadership in providing solutions to public safety organizations with Nokia Siemens Networks’ commercial LTE solutions.
Conference Call and Webcast Nokia Siemens Networks and Motorola will host a conference call for media beginning at 10:30 a.m. (U.S. Eastern Time) on Monday, July 19. The conference call will be webcast live with audio athttp://www.motorola.com/investor.
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of telecommunications services. With its focus on innovation and sustainability, the company provides a complete portfolio of mobile, fixed and converged network technology, as well as professional services including consultancy and systems integration, deployment, maintenance and managed services. It is one of the largest telecommunications hardware, software and professional services companies in the world. Operating in 150 countries, its headquarters are in Espoo, Finland. http://www.nokiasiemensnetworks.com
Talk about Nokia Siemens Networks' news at http://blogs.nokiasiemensnetworks.com and find out if your country is exploiting the full potential of connectivity at http://connectivityscorecard.org
Motorola is known around the world for innovation in communications and is focused on advancing the way the world connects. From broadband communications infrastructure, enterprise mobility and public safety solutions to mobile and wireline digital communication devices that provide compelling experiences, Motorola is leading the next wave of innovations that enable people, enterprises and governments to be more connected and more mobile. Motorola (NYSE: MOT) had sales of US $22 billion in 2009. For more information, please visit www.motorola.com.
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This press release contains “forward-looking statements” within the meaning of applicable federal securities laws. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as “believes”, “expects”, “intends”, “anticipates”, “estimates”, and similar expressions. We can give no assurance that any future results or events discussed in these statements will be achieved. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from the statements contained in this release. Many of these risks and uncertainties cannot be controlled by Motorola and include, but are not limited to: (1) the satisfaction of the conditions to closing, including (a) receipt of regulatory approvals, and (b) the absence of a material adverse effect on the assets being sold by Motorola under the proposed transaction; (2) Nokia Siemens Networks and Motorola having the ability to consummate the transaction; (3) the impact on Motorola’s performance and financial results deriving from the benefits from this transaction; and (4) the expected timeline for completing the transaction. A detailed description of other risks and uncertainties affecting Motorola, is contained in Item 1A of Motorola’s 2009 Annual Report on Form 10-K and in its other filings with the Securities and Exchange Commission (SEC). These filings are available for free on the SEC’s website at http://www.sec.gov and on Motorola’s website athttp://www.motorola.com. Motorola undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise.
SOURCE Nokia CorporationThis article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry