Telecommunications Industry News
Nokia Siemens Buys Nortel Wireless Division for $650-Million
1:31 am on June 22, 2009 | Category: Business, Cellular, Corporate, Wireless Technology
Telecommunications equipment maker, Nokia Siemens, has agreed to purchase the wireless division of bankrupt Nortel Networks, in a deal worth US$650 million.
“Nokia Siemens Networks 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,” Nokia Siemens said in a statement.
Toronto-based Nortel Networks has been operating under bankruptcy protection since mid-January, and intends to sell its remaining assets in the months to come.
The deal with Nokia Siemens will save the jobs of some 2,500 Nortel employees, mostly in Canada and the United States. However, it sets a low bar for future Nortel asset sales, valuing the company’s wireless business at less than one year’s earnings.
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Published by TeleClick Enterprises
Edited by Jeremy Maddock
