Nokia Siemens Networks to buy most of Motorola’s wireless network business for $1.2 billion

JULY 19, 2010 -- Nokia Siemens Networks and Motorola, Inc. (NYSE: MOT) have reached an agreement via with Nokia Siemens Networks will acquire the majority of Motorola’s wireless network infrastructure assets for $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.

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.

“Verizon views today’s announcement as good news for the global wireless industry,” said Richard J. Lynch, executive vice president and CTO 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 third largest wireless infrastructure vendor in the United States, the largest foreign wireless vendor in Japan, and strengthen its current Number 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.

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 Integrated Digital Enhanced Network (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.

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