After several difficult years as a drain on its parents, the joint venture Nokia Siemens Networks has been looking for strategic alternatives for some time. So it will come as no surprise that today they announced an agreement to sell the company's Optical Networks business unit. Marlin Equity Partners will be taking the division on a new, independent path.
The divestment is part of a plan to further enhance NSN's strategic focus on mobile broadband. Of course, the phrase 'further enhance strategic focus' is a fancy marketing term for 'simplify or die', but we all knew that. But it makes sense, given the different markets and technologies represented by DWDM and LTE going forward.
It's the best news of various alternatives for the divisions 1,900 employees, who will transfer to the newly independent company. I'm sure there will be some uncertainty going forward there too, but it's better than getting sold to another vendor for headcount synergies. The division's customers will come along for the ride, including their pan-European contract at Teliasonera International Carrier and their national US win over at XO this past summer, both for 100G.
Financial terms weren't disclosed in the PR, although I'm sure they'll filter out sooner or later. I wonder if they'll be renaming the business.
LightReading notes that Marlin Equity Partners is also buying what's left of Sycamore. Hmmm, I wonder if they've got other assets in mind.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!Categories: Mergers and Acquisitions · Telecom Equipment