Nokia Siemens Networks is contemplating purchasing Motorola's (NYSE:MOT) telecom network unit for somewhere between $1.1 billion and $1.3 billion, according to a report by the Wall Street Journal citing people familiar with the deal. An agreement could be reached in the next few weeks.
The Motorola unit makes older generation wireless gear, but by purchasing this business NSN would be able to offer customers the opportunity to upgrade to new equipment. Motorola customers include Verizon Wireless (NYSE:VZ) and Sprint Nextel (NYSE:S) among others.
NSN is currently ranked third in global wireless equipment sales after Ericsson and Huawei. Huawei was rumored to be bidding on the Motorola unit earlier this year, but withdrew due to government security concerns.
Motorola is planning to split into two companies--called Motorola Solutions and Motorola Mobility--early next year, according to initial breakup plans the company filed with the Securities and Exchange Commission. Motorola co-CEO Greg Brown will lead the Solutions company, which will include Motorola's enterprise mobility and network infrastructure units, and co-CEO Sanjay Jha will lead the Mobility company, made up of Motorola's handset unit and set-top box division.
For more:
- see this WSJ article (sub. req.)
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