Posted by: Jessica Scarpati
4G, LTE, M&A, mergers, Motorola, Nokia Siemens Networks, NSN, vendors, wireless
Nothing like starting off the week with a bang. Nokia Siemens Networks announced today it’s paying $1.2 billion for some of Motorola’s wireless technologies — and perhaps just as significant, its customer base and foothold into the North American market.
Here’s the rest of the details from NSN’s release:
Nokia Siemens Networks expects that based on revenue, with the addition of the Motorola wireless network infrastructure business, it will become the #3 wireless infrastructure vendor in the United States, the #1 foreign wireless vendor in Japan, and strengthen its current #2 position in the global infrastructure segment.
Motorola’s networks infrastructure business provides products and services for wireless networks, including GSM, CDMA, W-CDMA, WiMAX and LTE. This business is a market leader in WiMAX, with 41 contracts in 21 countries; has a strong global footprint in CDMA with 30 active networks in 22 countries; and a robust GSM installed base, with more than 80 active networks in 66 countries; and excellent traction with LTE early adopters.
NSN is licking its chops over the potential 50 operator customers it expects to acquire in the deal. The company also says the merger will “strengthen its position” with some of its existing customers, including China Mobile, Clearwire, KDDI, Sprint, Verizon Wireless and Vodafone. They expect the deal to close by the end of the year.
As MarketWatch points out, this moves Motorola a step closer to its assertion earlier this month that it would split the company in two. The pub also notes that this comes after NSN’s two failed attempts to buy similar assets from Nortel Networks, beaten out by Ericsson and Ciena Corp.
Don’t say we didn’t warn you. Although this merger includes a pretty broad portfolio, our story last month predicted lots of M&A activity in the LTE market. Bill Rubino, principal analyst at ACG Research, expects most of the action will be core infrastructure incumbents acquiring radio vendors.