After months of delays, Nokia Siemens Networks (NSN) has at last formally acquired the networking business of Motorola Solutions.
Motorola cut the price of the deal to $975 million to ensure that the sale went ahead, having initially agreed to sell the division to NSN for $1.2 billion.
The sales process had been much delayed, and included an extended review by the Chinese regulators. NSN has eagerly sought to close the deal in a bid to help its ambitions to provide better access to the booming US infrastructure market, and bolster its position against rivals Huawei and ZTE.
This move now repositions NSN to try and take on Huawei for the role of the world's No. 2 mobile equipment supplier, and will see it taking over support responsibilities for 50 former Motorola operator customers in 52 countries. Nearly 7,000 Motorola employees will transfer across to NSN, together with various research and development offices in the US, UK, China, Russia and India.
Commenting on the purchase, the CEO of NSN, Rajeev Suri, said that the acquisition would complement its existing business and broaden NSN's market share. "Our combined knowledge and experience will provide our newly expanded customer base with the means to grow by providing greater value to their subscribers," he said in a statement.
With the infrastructure business expected to become even more cut-throat as LTE tenders are issued, the newly enlarged NSN will be watched closely by Ericsson and the two Chinese vendors for any stumbles as it integrates the Motorola assets into its business structure and culture.
- see this Reuters article
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