Nokia Corporation is to buy Siemens' 50% stake in Nokia Siemens Networks (NSN) for £1.4bn.
The deal is expected to be sealed by the end of this year, making the enterprise a wholly owned subsidiary of Nokia. NSN’s new name and branding has yet to be revealed.
Nokia said it will be business as usual at NSN, with Rajeev Suri continuing as CEO and Jesper Ovesen remaining executive chairman of Nokia Siemens Networks. its operational headquarters will remain in Espoo, Finland, and the company will continue to have a strong regional presence in Germany, including its major hub in Munich.
Stephen Elop, president and CEO of Nokia, commented: ‘With its clear strategic focus and strong leadership team, Nokia Siemens Networks has structurally improved its operational and financial performance.
‘Furthermore, Nokia Siemens Networks has established a clear leadership position in LTE, which provides an attractive growth opportunity. Nokia is pleased with these developments and looks forward to continue supporting these efforts to create more shareholder value for the Nokia group.’
Joe Kaeser, Siemens CFO, said: ‘With this transaction, we continue our efforts to strengthen our focus on Siemens' Core areas of energy management, industry and infrastructure as well as healthcare. The full acquisition of Nokia Siemens Networks by Nokia offers an attractive opportunity to actively shape the telecom equipment market for the future and create sustainable value."
Nokia Siemens Networks was established on April 1, 2007, as a joint venture combining Nokia's Networks Business Group and Siemens' carrier-related operations for fixed and mobile networks. NSN is a global provider of telecommunications infrastructure, across more than 150 countries.
Nokia said it supports the current management plan, including the Nokia Siemens Networks restructuring plan which is already in progress and which Nokia said will remain unchanged by the acquisition.