Motorola has added to its digital wireless armoury with the purchase of Lucent Technologies' wireless handset research and development team.
Motorola will create a state of the art design centre focused on digital wireless technology at Lucent's Piscataway, New Jersey, facility. Around 300 Lucent R&D staff working at the facility will become Motorola employees.
Financial details of the deal have not been disclosed. Several news sources had earlier quoted a report in the Wall Street Journal valuing the deal at up to $200 million, but Motorola told VNU Newswire this figure is "highly inflated."
"This is far far above what the actual deal represents," said Motorola spokesperson David Pinsky.
Motorola is facing tough competition in the digital wireless arena from European manufacturers Nokia and Ericsson. Nokia is now the world's leading mobile phone manufacturer.
Motorola said the deal brings in some talented new staff to bolster its R&D capacity.
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