Nokia Siemens Buys Motorola’s Wireless Equipment Division

July 19th, 2010 by · 1 Comment

The rumors last week were true: Nokia Siemens has indeed agreed to purchase Motorola’s wireless equipment business.  The price tag for those $3.5-4.0B in revenues is apparently $1.2B.  For that price, Nokia will gain greater scale in the US and Asian marketplaces, including ‘incumbent relationships with more than 50 operators’ like Verizon Wireless and Sprint Nextel, amongst others.  

This is not Nokia Siemens’s first attempt to bulk up in the North American market.  Over the winter they took two different swings at parts of Nortel, but lost out in the auction to Ciena and to rival Ericsson.  The third time’s a charm apparently.

Motorola will keep its iDEN business, whose push-to-talk functionality was once the darling of the wireless business but whose focus nowadays is on other products.  They also intend to spin off their handset business next year, which will be called Motorola Mobility, with the last piece being Motorola Solutions.

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Categories: Mergers and Acquisitions · Telecom Equipment · Wireless

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  • Granite says:

    I’m wondering what this means for motorola products in the US… Does this mean prices will be decreasing since Siemen’s is a global conglomerate?

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