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NSN sells WiMax to private equity company
30 November 2011
Nokia Siemens Networks to sell former Motorola WiMax business to private equity-backed NewNet
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Nokia Siemens Networks has announced the first sale of one of its businesses since its restructuring announcement a week ago.
This sale, for an undisclosed price, is of the WiMax business of the former Motorola Solutions, which NSN bought in May 2011 for $975 billion.
The new owner, which will take on about 300 employees in Chicago — the former Motorola headquarters — and the Chinese city of Hangzhou, is NewNet Communication Technologies, a company based in Connecticut that is backed by private equity investor Skyview Capital. The deal is expected to close before the end of the year.
Ron Pyles, president and CEO of NewNet, said: “The addition of the WiMax business would enhance the breadth of NewNet’s product portfolio, R&D capabilities, customer relationships and our overall market position in providing wireless infrastructure solutions to carriers on a global basis.”
Marc Rouanne, head of network systems at NSN, said: “This transaction would also provide an excellent opportunity for our WiMax employees. We have great confidence in NewNet’s plans to become a major WiMax infrastructure provider. The company has a solid track record in acquiring telecommunication businesses and driving revenue growth.”
In January 2011 NewNet acquired Traxcom, a transaction processing company. In June 2010 it bought the IP messaging business from Chinese vendor UTStarcom. The company dates back to 1989 but was part of ADC for some years until 2001 and then part of SS8 networks until 2007, when the company’s signalling and SMS unit was bought by Skyview.
Former AT&T executive Pyles added: “NewNet recognises there is enormous potential in providing outstanding products, support and services to operators who have already invested heavily in WiMax technologies as well as those who will do so in the future.” GTB
Further reading from Global Telecoms Business:
NSN to lose 23% of staff in restructuring 23 Nov 2011
NSN sells microwave transport for €15m 04 Nov 2011
Nokia and Siemens pump €1bn into NSN 29 Sep 2011
NSN 'needs further €1bn' for restructuring 18 Aug 2011
Nokia and Siemens drop private equity search 13 Jul 2011
NSN 'unsuccessful' in deal for equity stake 27 Jun 2011
NSN buys Motorola operation for $975m 03 May 2011