HELSINKI - Nokia Siemens Networks will acquire the majority of Motorola's wireless operations for $ 1.2 billion - a major thrust to gain a stronger position worldwide, the company said Monday.
The Finland-based company said the deal is "expected to strengthen significantly the presence of Nokia Siemens Networks worldwide, particularly in the United States and Japan."
Nokia Siemens said it "corresponds to having more than 50 operators, including major U.S. wireless carriers and cable companies, like Verizon Wireless and Sprint Nextel Corp. will also improve its position with China Mobile, Clearwire, KDDI, Sprint and Vodafone.
Nokia Siemens Networks - a joint venture between Nokia Corp. of Finland and Siemens AG of Germany - has seen declining profits in recent years, exacerbated by the global economic slowdown.
The new contract, expected to be completed later this year, could improve the profitability and "significant upside potential," said Nokia Siemens.
The agreement is a step in the process of dividing Schaumburg, Illinois-based Motorola. The company has been planning for years to split the cell phone division, but heavy losses in the unit have been forced to postpone the transfer. It is now scheduled for the first quarter of next year.
The handset division, to be named Motorola Mobility, will have with him the division that manufactures boxes of cable set-top.
That will leave Motorola solutions, the rest, focused on government and corporate clients with products such as police radios and barcode scanners. It is also keeping a portion of its portfolio of wireless network: the iDEN division that makes equipment used in the Nextel network Sprint Nextel Corp. s'. Motorola invented the technology and is the main equipment supplier.
Its function push-to-talk is appreciated by the dispatchers and crews, but has been overshadowed in the mainstream by other broadband technologies that offer data rates.
Nokia Siemens CEO Rajeev Suri described the deal as an acquisition "exciting ... with significant benefits for customers, employees and our shareholders."
"Motorola's current customers will continue to receive world-class support for its installed base and a clear path for the transition to next-generation technologies while employees will join an industry leader with the scale and global reach," said Suri.
The parent company shares in Nokia were trading 1.4 percent in euro6.86 ($ 8.92) in afternoon trading in Helsinki.(Yahoo!)
The Finland-based company said the deal is "expected to strengthen significantly the presence of Nokia Siemens Networks worldwide, particularly in the United States and Japan."
Nokia Siemens said it "corresponds to having more than 50 operators, including major U.S. wireless carriers and cable companies, like Verizon Wireless and Sprint Nextel Corp. will also improve its position with China Mobile, Clearwire, KDDI, Sprint and Vodafone.
Nokia Siemens Networks - a joint venture between Nokia Corp. of Finland and Siemens AG of Germany - has seen declining profits in recent years, exacerbated by the global economic slowdown.
The new contract, expected to be completed later this year, could improve the profitability and "significant upside potential," said Nokia Siemens.
The agreement is a step in the process of dividing Schaumburg, Illinois-based Motorola. The company has been planning for years to split the cell phone division, but heavy losses in the unit have been forced to postpone the transfer. It is now scheduled for the first quarter of next year.
The handset division, to be named Motorola Mobility, will have with him the division that manufactures boxes of cable set-top.
That will leave Motorola solutions, the rest, focused on government and corporate clients with products such as police radios and barcode scanners. It is also keeping a portion of its portfolio of wireless network: the iDEN division that makes equipment used in the Nextel network Sprint Nextel Corp. s'. Motorola invented the technology and is the main equipment supplier.
Its function push-to-talk is appreciated by the dispatchers and crews, but has been overshadowed in the mainstream by other broadband technologies that offer data rates.
Nokia Siemens CEO Rajeev Suri described the deal as an acquisition "exciting ... with significant benefits for customers, employees and our shareholders."
"Motorola's current customers will continue to receive world-class support for its installed base and a clear path for the transition to next-generation technologies while employees will join an industry leader with the scale and global reach," said Suri.
The parent company shares in Nokia were trading 1.4 percent in euro6.86 ($ 8.92) in afternoon trading in Helsinki.(Yahoo!)
