In a latest move by Nokia Siemens Networks, one of the major acquisition has been finally given shape when Motorola’s Wireless Network Unit would be overtaken by for $1.2 BIllion in cash. With this current move Nokia Siemens Networks expects further strong ties with multiple Telecom providers and stand strong as third largest wireless network provider in U.S, the biggest foreign wireless vendor in Japan and strengthen its second position at global level.
By the end of 2010, as per the contract terms, company is expecting to complete transaction and all 7,500 employees of Motorola’s wireless network unit would be part of Nokia Siemens Networks. This way Nokia Siemens Networks’ will not have any financial influence in 2010.
“I believe the addition of Motorola’s Networks business will significantly strengthen our worldwide presence, enhance our scale in the United States, Japan and other priority regions and reinforce our leadership position in the global wireless sector,” said Rajeev Suri, chief executive officer of Nokia Siemens Networks.
In the big picture, Motorola’s sale is one more step in separating its wireless handset unit, which is now best known for its Droid smartphones. Motorola plans to spin off its handset unit is expected to be complete in the first quarter of 2011. Motorola’s handset unit will be spun off tax free to existing shareholders and include mobile devices and home networking gear. Motorola will retain its enterprise—or Enterprise Mobility Solutions (EMS)—unit .