Home News Nokia Siemens buys bulk of Motorola’s business for 1.2 billion USD

Nokia Siemens buys bulk of Motorola’s business for 1.2 billion USD

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Fibre_cable011 MUNICH (Dow Jones) – Nokia Siemens Networks ( NSN ) bought for 1.2 billion USD in cash much of the equipment division for wireless networks of the U.S. mobile phone manufacturer Motorola. (Photo : Nokia)

Until the end of the closing of the acquisition was expected , as NSN and Motorola jointly announced on Monday . Impact on the fiscal year 2010 does not expect NSN.
The acquisition will result in NSN to higher profitability and greater cash flow, said CEO Rajeev Suri NSN . The joint venture of the Finnish mobile phone manufacturer Nokia and the Munich technology group Siemens plans to expand after several failed attempts, his commitment to the U.S. market and Japan. Around 7,500 people are following the acquisition of Motorola to switch to NSN.
The NSN network producer takes over only part of the Motorola division. The so-called iDEN push -to -talk "technology under the name " Motorola reserves .
NSN strives to have been for some time to grasp with the help of acquisitions in the U.S. market. Last year , the company tried to take two divisions of the insolvent Nortel Networks Corp. . The wireless unit and the optical network division but ultimately went to the Swedish Telefon AB LM Ericsson and Ciena Corp. , the .
With the acquisition of the Motorola division is now NSN provides access to American customers as the telecommunications companies Verizon Wireless or Sprint Nextel Corp. , as well as to Japanese companies such as KDDI Corp. .
A Siemens spokesman said , Siemens will accompany the NSN transaction " positive ", but it had no cash impact for the Mutual Group. "The acquisition is positive for the further development of the NSN ‘s business. We expect significant synergies that increase the value of NSN business for Siemens as a shareholder , "said the spokesman.
The financing of this acquisition successes solely by NSN, he said. The NSN and Nokia Siemens owners would turn to support , however , a shareholder loan of EUR 250 million at the time of closing in equity. Further financial support, or measures affecting the capital , were neither confirmed nor intended by Siemens .
The Wall Street Journal had previously reported several times on the takeover plans of NSN.

Web sites:
www.nokiasiemensnetworks.com
www.motorola.com
– By Matthias Karpstein , Dow Jones Newswires, +49 89 55214030 , matthias.karpstein @ dowjones.com
DJG / mak / sha / ISJ