Nokia Networks has completed the acquisition of part of the wireless network business of Panasonic System Networks (PSN), concluding a deal first announced on July 31 last year and strengthening the Finnish equipment manufacturer's presence in Japan.
The vendor said the acquisition includes Panasonic's LTE and 3G wireless base station system business as well as related wireless equipment system activities. Nokia Networks Japan will take over fixed assets and business contracts with Panasonic's customers as well as more than 300 Panasonic employees.
"With this acquisition, Nokia Networks will single-handedly contribute towards the domestic and overseas business of Japan's operators, and also benefit from synergies in terms of efficient product operations and focused R&D efforts. Furthermore, this acquisition also provides us with the opportunity to tap the potential of the Carrier Mobile System market – a key focus area for our business in Japan," said Ashish Chowdhary, chief business officer at Nokia Networks.
Nokia Networks noted that it is the only foreign vendor to supply network infrastructure, software and services to all Japanese operators. The company added that Japan is a key market in its strategy to focus on becoming "the highest quality and most innovative mobile broadband company."
The move certainly marks a positive start to the year for the Finnish vendor, which last year undertook a series of landmark measures that saw it complete the sale of its devices business to Microsoft and focus on networks, mapping and new technologies. The company has since announced its return to the devices market with the planned launch of the N1 Android tablet in the first quarter of 2015.
Networks remains a strong pillar of growth: in November, Nokia increased its 2015 operating profit goals for its Networks business, as it detailed a company-wide growth strategy and reaffirmed its commitment to restart dividend payments in the long term.
Nokia is aiming to achieve a long-term non-IFRS operating income margin in the range of 8 per cent to 11 per cent, compared to its previous goal of a margin ranging from 5 per cent to 10 per cent. The business achieved a margin of 13.5 per cent in the third quarter of 2014, and 11.4 per cent in the nine months to end-September.
For more:
- see this Nokia Networks release
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