Nokia Siemens Networks to acquire Nortel’s assets in $650m deal
Published:19-June-2009
By Staff Reporter
To strengthen its position in LTE and North America
Nortel has announced that it is selling its Long Term Evolution (LTE) and CDMA assets to Nokia Siemens Networks (NSN) for $650m.
Nortel also said that it is in discussions with external parties to sell other businesses. The company said it would assess other restructuring alternatives for these businesses in the event it is unable to maximise value through sales.
According to NSN, the acquisition is expected to bring together the assets of the two companies in the field of mobile radio access and expand its presence in North American. It will make NSN a supplier of wireless infrastructure products in the region. Around 2500 Nortel employees are expected to be transferred to Nokia Siemens Networks as a part of the transaction.
The transaction is subject to the approval of the United States Bankruptcy Court and the Ontario Superior Court of Justice. Closing of the transaction is expected to occur in the third quarter of 2009, subject to customary closing conditions.
Simon Beresford-Wylie, chief executive officer of Nokia Siemens Networks, said: "This agreement provides an important strategic opportunity for Nokia Siemens Networks to strengthen its position in two key areas, North America and LTE, at a price that makes good economic sense. The R&D organisation in Canada would become a long-term wireless center of excellence within Nokia Siemens Networks, complementing our other global sites."
Mike Zafirovski, president and chief executive officer of Nortel, said: "Maximising the value of our businesses in the face of a consolidating global market has been our most critical priority. We have determined the best way to do this is to find buyers for our businesses who can carry Nortel innovation forward, while preserving employment to the greatest extent possible.”
