Motorola Solutions (NYSE:MSI) and Chinese vendor Huawei agreed to settle all pending litigation between the two companies, clearing the way for Motorola's sale of its wireless networks business to Nokia Siemens Networks. Separately, Motorola said it renegotiated the price tag of the deal from $1.2 billion to $975 million.
Huawei had asserted that the Motorola-NSN deal would expose Huawei's trade secrets to NSN. Motorola has sold Huawei's network products under its brand since 2000. For its part, Motorola had accused Huawei of stealing its own trade secrets in a separate lawsuit.
The terms of the deal were not disclosed. However, Motorola will pay Huawei a one-time fee, and Huawei will allow NSN to receive and use Huawei's confidential information to service the networks Motorola deployed worldwide using Huawei's products and technologies.
Huawei's lawsuit was one of the key obstacles blocking the Motorola-NSN deal, which is being reviewed by Chinese antitrust regulators. Motorola said it now expects to close the deal on April 29. The transaction, which was first announced in July, is expected to improve NSN's position in the U.S. market as well as in Japan.
- see this release
- see this Reuters article
- see this WSJ article (sub. req.)
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