Nokia Siemens Networks will purchase the majority of Motorola’s wireless network assets for $US1.2 billion, intended to increase the company’s presence in the US and Japan.
It is understood the company will not have partnerships with over 50 operators including Sprint, Verizon and Vodafone.
Motorola chief executive Greg Brown said in a statement that the deal was “Great news for our customers, our investors and our people,” and noted it would allow the company to “sharpen our strategic focus on providing mission and business critical solutions for our government, public safety, and enterprise customers”.
Rajeev Suri, chief executive of NSN, also said in a statement the deal is “an exciting acquisition”.
“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 cashflow and to have significant upside potential.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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