Nokia Siemens Networks has announced on Saturday that it will buy Nortel’s CDMA business for $650 million, boosting its leadership position in long term evolution (LTE) next-generation wireless technology and expanding its presence in North America.
“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, in a statement.
Under the transaction, more than 2,500 Nortel employees, primarily in Ottawa, Canada, and Dallas, Texas, as well as employees in Mexico and China will be transferred to Nokia Siemens Networks. Approximately 400 of those employees are focused on LTE research and development, says Nokia Siemens.
The support and development of Nokia Siemens Networks’ existing product lines would be unaffected by this acquisition, according to the company.
The transaction is subject to the approval of the United States Bankruptcy Court and the Ontario Superior Court of Justice. Hearings by those courts will be held on or before June 29, 2009, with final sale hearings expected on July 28, 2009 in the U.S and July 30, 2009 in Canada. The transaction is expected to close in the third quarter of 2009, and remains subject to customary closing conditions, including receipt of necessary regulatory approvals, says the company.