Nokia Siemens Networks (NSN) has announced a deal to acquire Motorola's wireless network infrastructure assets for $1.2bn (£786m).
Motorola will retain its integrated Digital Enhanced Network business, along with most of the patents related to its wireless network infrastructure business and other selected assets.
NSN said that the Motorola deal will make it the number three wireless infrastructure vendor in the US and the number one foreign wireless vendor in Japan, while consolidating its current number two position in the global infrastructure segment.
The company will gain incumbent relationships with more than 50 network operators, and a large global footprint in CDMA assets with Motorola's 30 networks in 22 countries.
The companies are also exploring a potential global relationship that would combine Motorola's public safety solutions with NSN's commercial Long Term Evolution solutions.
Some 7,500 employees are expected to transfer from Motorola's wireless network infrastructure business to NSN when the transaction closes by the end of 2010.
NSN has been looking to expand its global network infrastructure reach for some time in anticipation of strong demand for next-generation mobile network access.
The company missed out to Nortel and US network equipment manufacturer Ciena on two acquisitions from bankrupt Canadian firm Nortel last year.
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