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Nokia Siemens buys Nortel assets for $650mn

Posted: 23 Jun 2009     Print Version  Bookmark and Share

Keywords:LTE  CDMA  LTE research  wireless 

Nokia Siemens Networks has acquired key assets from Nortel to strengthen its position in Long Term Evolution (LTE) and to expand its market presence in North America.

The Rs.3,184.15 crore ($650 million) acquisition, which will bring together the assets of the two companies in the field of mobile radio access, adds further key talent and resources to enhance Nokia Siemens Networks' existing strength and momentum in LTE.

"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," said Simon Beresford-Wylie, Chief Executive Officer of Nokia Siemens Networks. "It also represents stability for Nortel's existing customers and offers a great opportunity for employees to move into a stable future with an industry winner. The R&D organisation in Canada would become a long-term wireless centre of excellence within Nokia Siemens Networks, complementing our other global sites."

The transaction would see more than 2,500 Nortel employees—largely located in Ottawa, Canada and Dallas, United States but also including employees in Mexico and China—transferred to Nokia Siemens Networks. Approximately 400 of those employees are focused on LTE research and development, and would enhance the ability of Nokia Siemens Networks to provide innovation and strengthen its position in LTE. The support and development of Nokia Siemens Networks' existing product lines would be unaffected by this acquisition.

Export Development Canada (EDC), Canada's government-owned export credit agency, is supporting this transaction with a Rs.1,469.61 crore ($300 million) loan commitment.

Due to Nortel's restructuring process, the transaction is subject to the approval of the United States Bankruptcy Court and the Ontario Superior Court of Justice. Closing of the transaction, which is expected to occur in the third quarter of 2009, remains subject to customary closing conditions, including receipt of necessary regulatory approvals.

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