Nokia Siemens Networks Signs Agreement With Nortel To Purchase LTE and CDMA
Assets
Planned acquisition will keep Canada at the forefront of next-generation
wireless research and development; strengthen Nokia Siemens Networks in North
America and LTE
ESPOO, Finland, June 19 /PRNewswire/ -- Nokia Siemens Networks has taken a
significant step towards strengthening its leadership in Long Term Evolution,
or LTE, next generation wireless technology and expanding its market presence
in North America with an agreement to acquire key assets from Nortel.
The planned USD 650 million acquisition, which will bring together the highly
complementary assets of the two companies in the field of mobile radio access,
adds further key talent and resources to enhance Nokia Siemens Networks'
existing strength and momentum in LTE. The acquisition of Nortel's profitable
CDMA business would significantly improve Nokia Siemens Networks' presence in
North America and make it a leading supplier of wireless infrastructure
products in the region.
"This agreement provides an important strategic opportunity for Nokia Siemens
Networks to strengthen its position in two key areas, North America and LTE,
at a price that makes good economic sense," said Simon Beresford-Wylie, Chief
Executive Officer of Nokia Siemens Networks. "It also represents stability for
Nortel's existing customers and offers a great opportunity for employees to
move into a stable future with an industry winner. The R&D organization in
Canada would become a long-term wireless center of excellence within Nokia
Siemens Networks, complementing our other global sites."
Existing Nortel and Nokia Siemens Networks customers welcomed the agreement.
"Verizon views today's announcement as good news for the global wireless
industry," said Dick Lynch, Executive Vice President and Chief Technology
Officer of Verizon. "This deal brings together two important Verizon
suppliers; we look forward to our continuing work with Nokia Siemens
Networks."
"As Nortel's largest customer in Canada, Bell supports Nokia Siemens' plan to
continue to foster Nortel's long history of research and development in
Canada. Such ongoing technology development is of critical importance as Bell
rapidly builds out our advanced next generation wireless networks across
Canada," said Stephen Howe, Senior Vice President of Wireless Networks and
Chief Technology Officer, Bell Mobility.
"This news eliminates industry uncertainty and enhances CDMA and EVDO, today
and in the future. We at Sprint are pleased to have the support of a strong
and stable supplier to continue to deliver reliable technology and services
that our customers rely on every day," said Dan Hesse, President and Chief
Executive Officer, Sprint Nextel.
"Bringing these assets of Nortel together with Nokia Siemens Networks is good
for customers like TELUS and good for Canada," said Eros Spadotto, Executive
Vice-President, Technology Strategy of TELUS. "As TELUS invests in building a
next generation wireless network, we are pleased by Nokia Siemens Networks'
strong desire to maintain a strong R&D presence in Canada, helping keep the
country at the forefront of advanced wireless technology."
The transaction would see more than 2,500 Nortel employees - largely located
in Ottawa, Canada and Dallas, United States but also including employees in
Mexico and China - transferred to Nokia Siemens Networks. Approximately 400 of
those employees are focused on LTE research and development, and would enhance
the ability of Nokia Siemens Networks to provide innovation and strengthen its
position in LTE, where it is already working with customers such as NTT Docomo
in Japan. The support and development of Nokia Siemens Networks' existing
product lines would be unaffected by this acquisition.
Export Development Canada (EDC), Canada's government-owned export credit
agency, is supporting this transaction with a USD 300 million loan commitment.
"We are delighted to have secured the backing of EDC for this transaction,"
said Luca Maestri, Chief Financial Officer of Nokia Siemens Networks. "Nokia
Siemens Networks is committed to Canada as an important center of excellence
for next-generation wireless technology."
Due to Nortel's restructuring process, the transaction is subject to the
approval of the United States Bankruptcy Court and the Ontario Superior Court
of Justice. Hearings by those courts to approve bidding procedures, break-up
fee and expense reimbursement will be held on or before June 29, 2009, with
final sale hearings expected on July 28, 2009 in the US and July 30, 2009 in
Canada. Closing of the transaction, which is expected to occur in the third
quarter of 2009, remains subject to customary closing conditions, including
receipt of necessary regulatory approvals.
About Nokia
Nokia is a pioneer in mobile telecommunications and the world's leading maker
of mobile devices. Today, we are connecting people in new and different ways -
fusing advanced mobile technology with personalized services to enable people
to stay close to what matters to them. We also provide comprehensive digital
map information through NAVTEQ; and equipment, solutions and services for
communications networks through Nokia Siemens Networks.
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of telecommunications
services. With its focus on innovation and sustainability, the company
provides a complete portfolio of mobile, fixed and converged network
technology, as well as professional services including consultancy and systems
integration, deployment, maintenance and managed services. It is one of the
largest telecommunications hardware, software and professional services
companies in the world. Operating in 150 countries, its headquarters are in
Espoo, Finland. www.nokiasiemensnetworks.com
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SOURCE Nokia
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