Nokia Siemens Networks and Motorola have just announced they’ve entered into an agreement for Nokia Siemens to buy “the majority of Motorola’s wireless network infrastructure assets” (i.e. Moto’s Networks business) for $1.2 billion in cash.
By acquiring Motorola’s Networks business, Nokia Siemens will strengthen its presence in countries like the United States and Japan (two important CDMA markets). Once the deal is completed (sometime in late 2010), Nokia Siemens will have closer relationships with mobile carriers like Verizon, Sprint, Vodafone, China Mobile and KDDI.
The deal doesn’t include Motorola’s iDEN business, which will still be controlled by Moto.
About 7,500 employees are expected to be transferred from Motorola to Nokia Siemens Networks, which will consolidate its position as the world’s second largest telecoms equipment vendor (behind Ericsson and ahead of Huawei).
Had it not been purcahsed by Nokia Siemens, Motorola’s Networking business (together with the Enterprise Mobility Solutions business) would have split up from Moto’s Mobile Devices entity in the first quarter of 2011. Motorola’s probably better off without it – it will have more cash and more time to take better care of the smartphone business, which has recently started to work quite well.
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