Telecommunications equipment supplier Nokia Siemens Networks announced Monday it has chose to 1.2 billion U.S. dollars for most companies (MOT) Motorola Inc. to pay U.S. network equipment to get a stronger foothold in the vital U.S. and Japanese markets.
In a joint statement the companies said they expect the agreement at the end of 2010 to close.
I have the addendum of Motorola Networks Business thinking is clearly strengthen our presence in the world, increasing our scale in the United States, Japan and additional priority regions and strengthen our leading position in the global wireless, said the chief executive of Nokia Siemens Rajeev Suri.
Nokia Siemens, a joint venture between Finland Nokia Corp. (NOK) and Siemens AG (SI) said it expects the transaction to its business relationships with a number of telecom operators including China Mobile Ltd. (CHL), Sprint Nextel Corp. . strengthen (S) and Vodafone Group PLC (VOD).
Below the agreement Nokia Siemens hopes of the largest foreign supplier of wireless equipment in Japan has become the third in the U.S., and strengthen its position as number two in the segment of the world’s infrastructure.
Telefon AB LM Ericsson in Sweden is currently the world’s largest manufacturers of network equipment, Nokia Siemens before, Paris-based Alcatel-Lucent (ALU), and China’s Huawei Technologies Co.
Approximately 7,500 employees will be transferred to Nokia Siemens Networks, Motorola’s wireless network infrastructure company at the close of the transaction, the two companies.
Nokia Siemens parent company Siemens AG said in a statement that the acquisition will be the global presence of the joint venture to strengthen and make synergies believes.
Siemens and Nokia will support the offer by the transfer of an equity loan of € 250 million in preferred stock in each case, he said, but added that the acquisition will be financed by Nokia Siemens in its entirety.