Nokia Siemens Networks says it has taken a “significant step” towards strengthening its leadership in L...
June 23, 2009
Nokia Siemens Networks says it 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 Nortel Networks Corp.’s CDMA business unit for US$650 million..
“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 centre of excellence within Nokia Siemens Networks, complementing our other global sites.”
The transaction would see more than 2,500 Nortel employees — largely located in Ottawa and Dallas, 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
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 with final sale hearings expected on July 30.