Nokia Siemens sells optical networks unit

As part of its plan to reduce costs and focus on mobile broadband, Nokia Siemens Networks is selling its optical networks business unit to US-based private investment firm Marlin Equity Partners for an undisclosed sum.

As per the deal, NSN's optical unit will be established as an independent new company by Marlin Equity with the goal of "becoming a leading provider in the optical market."

As a result, up to 1,900 employees – mainly in Germany, Portugal and China – from the optical business unit and related functions are expected to transfer to the new company, the company said in a statement.

"Our strategic focus on our core markets has enabled us to concentrate our energy and investment in areas such as LTE where we have strengthened our global leadership position," said Rajeev Suri, chief executive officer at Nokia Siemens Networks.

"This transaction builds on that momentum and aims to provide a new home for the optical networks business with the focus, resources and strategic flexibility to address the opportunities in the optical market."

The new optical company will be headquartered in Munich, Germany with operations around the world and will be led by its existing management team with Herbert Merz nominated as chief executive officer.

The transaction is expected to close in the first quarter of 2013.