HELSINKI (Reuters) - Nokia Siemens Networks will buy Motorola’s telecom network equipment business for $1.2 billion, getting a stronghold in the North American market, and taking No 2 position in the cut-throat mobile gear market.
The following are views of analysts on the deal:
THOMAS LANGER, WEST LB
“This is the last chance for NSN to expand their presence in North America.”
“By having now a direct access to CDMA operators should help them, as it will help Ericsson and Alcatel-Lucent to approach CDMA operators for CDMA to LTE conversion.”
“At this point it’s almost impossible to judge whether $1.2 billion is cheap or expensive.”
“What we would like to know is what about the acquired balance sheet of those entities, how much gross debt and how much net debt there is ... and I would like to know in much greater detail what the revenue mix of the acquired businesses is.”
EARL LUM, EJL WIRELESS
“It is a desperate attempt to gain market share in the U.S. after the twice failed attempts to buy Nortel’s CDMA and Metro Ethernet businesses.”
“There isn’t much technology worth purchasing, and the market share for Motorola has been on a downward spiral in 2G and 3G.”
“The integration of the personnel and the manufacturing facilities and supply chain will prove to be challenging in addition to the differences in corporate cultures.”
Reporting by Tarmo Virki, editing by Will Waterman
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