Nokia Siemens picks up Motorola network infrastructure division for $1.2 billion
By Joseph L. Flatley 
posted July 19th 2010 12:27PM
posted July 19th 2010 12:27PM
Nokia Siemens has just announced that it will be purchasing Motorola's wireless network infrastructure for a cool $1.2 billion in cash. This comes on the heels of an announcement by Moto that it would be splitting the company in two, one for Mobile Devices and one for Broadband and Mobility Solutions. It's clearly the company's strong showing in both WiMAX and CDMA that Nokia Siemens is after, although The New York Times points out that integrating the 7,500-strong staff, manufacturing, supply lines, and multiple product lines will be quite a challenge. The deal will hopefully be finalized by the end of the year. PR after the break.
Nokia Siemens Networks to Acquire Certain Wireless Network Infrastructure Assets of Motorola for US $1.2 Billion
Espoo, Finland; Schaumburg, Illinois – July 19, 2010 - Nokia Siemens Networks and Motorola, Inc. (NYSE: MOT) 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 US $1.2 billion in 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 in the 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 at 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. 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
About Motorola
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.
Media Inquiries
Nokia Siemens Networks
Ben Hunt, Communications
Phone: +44 7508 002382
Media Contacts: (for media and analysts only)
Jennifer Erickson
Office: +1 847-435-5320
jennifer.erickson@motorola.com
Motorola, Inc.
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 at 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. 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
Espoo, Finland; Schaumburg, Illinois – July 19, 2010 - Nokia Siemens Networks and Motorola, Inc. (NYSE: MOT) 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 US $1.2 billion in 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 in the 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 at 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. 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
About Motorola
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.
Media Inquiries
Nokia Siemens Networks
Ben Hunt, Communications
Phone: +44 7508 002382
Media Contacts: (for media and analysts only)
Jennifer Erickson
Office: +1 847-435-5320
jennifer.erickson@motorola.com
Motorola, Inc.
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 at 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. 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
Pshhh. Sell outs.
@MGore32 Cell outs?
@blokeyhighlander Nothing like a little Siemen in the morning.
@MGore32 Nokia just bought their way into being relevant in North America again.
Good news. A nice sizeable portfolio into the US market for NSN
@SKUK21 What?! You gotta be kidding.
I seriously do NOT understand this deal.
1.2B for a division that is not doing so great and it is already suffering lay-offs does not seem like the most sound decision for me.
First, (as I mentioned) NSN isnt doing much better despite being better positioned and having better products than Motorola.
Second, Motorola is doing even worse. Let the yanks fail completely (since they are already half way through) and buy that for a fraction of the price. Let them suffer more job losses in favor of a better deal.
Third, no patents included? Are you serious?
If they are not available anymore(and they would since the competing companies have already made their shopping), 1.2B seems enough money to start a hell out of a business, build facilities and build up relationships. So this idea that they want "the contacts" is not enough for me. Apart from Japan, USofA is not even shelling out loads of money for wireless technology.
Truth is, Nokia is known to overpay for companies, NAVTEQ anyone?. IMO they would be better off without.
And yes, OF COURSE, there will be lay-offs.
The only good news are for the Americans that sold that clunker to us, stupid europeans.
@Mr w00t
I think the question I have is, who are you? Why does your opinion matter? Do you have insider info on all the details of this purchase and are qualified to assess the impact, more than Nokia-Siemens' entire team? I don't understand how commenters like to sum up everything with literally zero knowledge apart from some media press release.
I got a agree with w00t in that sense that mobile phones have always been gold mine for Nokia.
Lets remember that when Nokia made it's loses q3 last year for a first time in 12 years mobile phones still made 500 million in profits for Nokia in that quarter, but it was Nokia Siemens Networks and a bit of Navteq that made Nokia lose money.
NSN is eating Nokias profits from it's core business. That said at least NSN are doing something rather than just standingstill.
@Almo Who am I? This is even related to what I said. If you have a valid point please make it and lets discuss, dont try to diminish what I said with this "who are you?"-BS. Who are you to come asking me this question? Future laid-off moto person? Did you sign the deal?
My opinion seems to matter for you, since you lost your most valuable time responding to me.
And no I dont have an insider of the deal, do you? If you do, please clarify the things I said. I have no problem in actually retracting wrong opinions. But you seem to be one of those lifeless forms that vague around the internet waiting for the moment to ask the same stupid questions you asked me. Have you done this today to that lol-cat youtube video already? Hurry up...
Zero knowledge? Again, enlighten us. Please. I might not be a big boss of Nokia or NSN but I know a thing or two hows the business going there... And it is not looking good. But since you seem to be above me in hierarchy and, oh, so full of information explain it to me.
Now be a man and stand for all the crap you said and next time you comment somewhere add some value to the conversation please.
Tell us your opinion. Different than you I actually want people to talk about this.
@Mr w00t
Its a good deal they got a good price, they pay about 0.5 times the annual revenue, and there is hardly any overlap in the customer base except the really large ones. NSN itself is doing much better lately and they are one of the three large players in telecom so they have the scale that Moto and others lack.
It would strengthen their product portfolio when they can integrate two more standards in their flexi bts (CDMA and WiMAX).
1.2B ain't that much for a profitable business, with good customer relation and a large footprint in North America and Asia. And for patents some CDMA network patents seems to be included and Cross- licensing deal as well.
NAVTEQ is a completely different story, they had to outbid other large techfirms that time, and overtime it will probably pay-of to have the largest map maker in-house. NSN on the other hand ain't known to overpay, like when they bid for Nortel's CDMA and LTE assets they did not rise their bid and Ericsson walked away with it for $1.13B.
@ariarinen Nice response and you didnt ask me "who are you"... Even though I have my quibbles about it (Asian market != Japan, meaning that rest of Asia has lot more to grow), Nokia could keep the stash of money for dividends/purchase of other companies(dont ask me which), profits dont seem high enough to payback in short term the investment, WiMax is going nowhere :(.
I guess the internet is not full of braindead people like almo after all...
@Mr w00t
I'm not sure about this either. NSN are the red headed step child of the Nokia family if you ask me.
@MarkAnderson "The man that owns the words" - This is how we call people like you where I come from...
I couldnt have put in better terms :D
Bravissimo...
"although The New York Times points out that integrating the 7,500-strong staff, manufacturing, supply lines, and multiple product lines will be quite a challenge."
i.e. layoffs are expected
Siemen is all over Motorola right now.
@rmbrown09
Win.
@rmbrown09
Droid Does split Motorola with a 7,500 strong staff of Siemens
(ok so maybe it doesn't make sense but i had to anyway.)
More than the technology, it's Motorola's customer base they're after.. Verizon, for one, has lots of Moto equipment and (little to) no NSN equipment. They're buying this for a foot in the door of markets/customers they don't have currently.
@MrGlitch VZW isn't using NSN for LTE?
@iansltx
NSN provides Verizon with IMS equipment for their LTE network while Ericsson and Alcatel-Lucent provides radio equipment.
> It's clearly the company's strong showing in both WiMAX and CDMA
> that Nokia Siemens is after
How is that clear? Two dying technologies. Forget them. It's the customer base NSN is after, especially in the US and Japan.
@machat
Yes the customer base is the main reason but CDMA will come in handy when those customers selects LTE suppliers and for low-cost broadband in emerging markets.
Patents etc. were not included in the deal. Nokia is desperate with US markets.
@BFish
It would not make sense for Moto to include the patents in this deal, it makes sense to keep them just like Nortel did when they sold their wireless division to Ericsson.
By the way is not Nokia who has bought them, its a joint-venture between Nokia and Siemens.
@BFish Not really. They control pretty much all other markets and they contain up to 100 times more potential and capital.
Arianen said pretty much what i was gonne say.
We are talking about Motorola here. Motorolas patents are not linked to to the network business. They are very much the core like they are for Nokia that gotmore than 60% of all gsm patents.
Same that happened to Ericsson with Nortel. Thought Nortel patents are minor compared to Nokia or Motorola.
Nokia Siemens network become second largest network provider in NA with this one deal. Before they only got 6% of the networks.
Good for both, Moto gets some cash and NSN gets CDMA know-how that will come in handy when CDMA carriers begins to migrate to LTE, and a good foothold in the North America when they can provide both major standards.
1.2 Billion in cash, all Twenty and Tens please!
@sLevin1Fo
I'd ask for it in singles, build a pool in the corporate offices, and use what's left to fill the pool. FREE MONEY BATHS FOR ALL EMPLOYEES!
@NnyIs1337 God Bless America!
Does this mean a Nokia Droid 3?
@metformin
its the network division not the handset? read the article b4 posting the next time
@metformin
NO, of course not, these companies are not producing mobile handsets , they provide equipment so that you can make calls :)
Good move if Apple plans to launch a cdma device, Nokia can double sue them, ha ! :)
@GV
they didn't buy any patents.
@Goc You don't need to buy them for that, you can just easily make an agreement that certain parties can not use them if not licensed by both parties (Motorolla&Nokia).
I tipped this story to engadget at 5 am.
@jsjdj
I was earlier. So what.
@jsjdjn
i tipped a cow yesterday