WiMax expansion isn't exactly all the rage
as of late, and so it comes as no surprise that Nokia Siemens Networks is shedding itself of the extraneous baggage. Following its recent whopping round of layoffs
, the move is a continuation of the company's efforts to bring stability to its bottom line. NewNet Communication Technologies has agreed to bring the castoff WiMax
technologies into its fold, along with approximately 300 NSN employees -- all for an undisclosed price -- in a deal that's expected to be finalized before year's end. A full press release follows the break.
NewNet plans to acquire Nokia Siemens Networks WiMAX business
Espoo, Finland / Shelton, Connecticut – November 29, 2011
NewNet Communication Technologies, LLC, a Skyview Capital, LLC portfolio company, announced today that the company plans to acquire the former Motorola Solutions' WiMAX business from Nokia Siemens Networks. Under the terms of the agreement, NewNet would acquire the complete WiMAX product portfolio, the related employees and assets, as well as active customer and supplier contracts. Approximately 300 Nokia Siemens Networks employees would transfer to NewNet. The companies expect to close before December 31, 2011.
"The addition of the WiMAX business would enhance the breadth of NewNet's product portfolio, R&D capabilities, customer relationships and our overall market position in providing wireless infrastructure solutions to carriers on a global basis. We are thrilled at the prospect of welcoming a world-class group of WiMAX pioneers and thought leaders to the NewNet team," said Ron Pyles, president and CEO of NewNet. "NewNet recognizes there is enormous potential in providing outstanding products, support and services to operators who have already invested heavily in WiMAX technologies as well as those who will do so in the future. We are committed to serving the market with an industry leading roadmap and innovative product migration options."
"We believe that our current WiMAX customers would receive the highest quality products, services and sales support from NewNet," said Marc Rouanne, head of Network Systems, Nokia Siemens Networks. "This transaction would also provide an excellent opportunity for our WiMAX employees. We have great confidence in NewNet's plans to become a major WiMAX infrastructure provider. The company has a solid track record in acquiring telecommunication businesses and driving revenue growth."
"This transaction represents a significant milestone in our strategy of building a strong global presence in the telecommunications marketplace through NewNet Communication Technologies", said Alex Soltani, chairman and CEO of Skyview Capital. "We are very excited about the WiMAX market opportunity and are fully committed to supporting Ron and his team as they evolve the business into a global leadership position."
As a part of the transaction the companies expect to transition approximately 300 globally deployed Nokia Siemens Networks employees to NewNet. Many of these employees are based in suburban Chicago, USA and Hangzhou, China. Nokia Siemens Networks and NewNet believe this acquisition would provide transferring employees with attractive professional growth opportunities in a solid, technologically advanced company that has an on-going focus within their core areas of expertise.
Specific terms of the transaction were not disclosed.