Nokia Siemens Networks is to buy most of the wireless network infrastructure assets from Motorola for $1.2 billion to bolster its rank as number two in the sector, it said on July 19.
The German-Finnish telecom equipment company said the move would strengthen its position making it the world's second largest company in the telecom infrastructure segment.
Nokia Siemens Networks (NSN) said it expected the transaction "to significantly strengthen (its) presence globally, particularly in the United States and Japan." NSN said the transaction would make it the number one foreign wireless vendor in Japan.
It will gain some 50 operators who are clients of Motorola, including China Mobile, Sprint and Verizon of the U.S., and Britain's Vodafone.
Some 7,500 employees, including those of large research facilities in the U.S., China, and India, will transfer to NSN from Motorola upon completion of the transaction, the company said.
The infrastructure NSN is acquiring from Motorola includes mobile networks of second generation (GSM), third generation (CDMA and WCDMA) and fourth generation (LTE and WiMAX).
Motorola is a market leader in WiMAX, for which it has 41 contracts in 21 countries.
The U.S .giant had announced on July 1 its intention to split its business in the first quarter of next year, separating products for consumers from its businesses making equipment. It said in November it wanted to develop its activities by means of takeovers and that it was looking first at the North American market.
NSN failed in two attempts to buy divisions being sold by Canadian group Nortel which was being broken up. One of these bids was lost to Ericsson which also wants to develop in the North American market.
Copyright Agence France-Presse, 2010