Andre Yoskowitz
20 Jul 2010 14:29
Nokia Siemens has said this week it will purchase Motorola's wireless-network equipment division for $1.2 billion in cash.
The company is a joint telecommunications venture between Nokia and Siemens and the division being purchased supplies carriers with equipment needed to build LTE, WiMax and 3G infrastructure.
Nokia says the acquisition will help it improve its position in the United States and Japan, two nations where sales have been low and brand recognition is low as well.
"First and foremost, this deal is about customers," says Rajeev Suri, CEO of Nokia Siemens. "We expect to gain an incumbent position with many new customers and strengthen our position with others."
With the acquisition, Suri says Nokia will establish new relationships with China Mobile, Verizon Wireless, Sprint and Clearwire.
The deal will close by the end of the year, and Nokia will bring on 7500 Motorola employees.