Schaumburg, Ill. -
will sell off most of its cellular-infrastructure business to Nokia Siemens for $1.2 billion by the end of the year as Motorola continues to plan for an eventual split into two companies.
Nokia Siemens will pay cash for the business, providing Motorola with additional resources to invest in the company and make possible handset-related acquisitions, analysts said. Motorola will retain its iDEN-network infrastructure business and "substantially all the patents" of its cellular-infrastructure business.
Motorola operates two business groups that will eventually split apart. One, the mobile device and home business, markets such products as mobile handsets, PNDs, such digital home entertainment devices as cable set-top boxes, and infrastructure that enables service providers to deliver video, voice and broadband-data solutions to consumers. The business is said to position Motorola "to lead in the convergence of mobility, media and the Internet."
Motorola's second business, enterprise mobility solutions and networks, includes the network infrastructure business to be sold to Nokia Siemens as well as two-way radio products and mobile computers for government and business, barcode scanners, RFID readers and wireless-network infrastructure to enterprises and governments.
Selling off the enterprise mobility business's cellular-infrastructure operations, said Motorola co-CEO Greg Brown, "is great news for our customers, our investors and our people and will allow us to sharpen our strategic focus on providing mission and business critical solutions for our government, public safety and enterprise customers."
The Motorola business to be sold to Nokia Siemens includes products and services for GSM, CDMA, WCDMA, WiMAX and LTE cellular networks. Nokia Siemens Networks said the acquisition would make it the third largest wireless infrastructure vendor in the United States and the top foreign wireless vendor in Japan while strengthening its No. 2 position globally in the cellular infrastructure segment.
About 7,500 Motorola employees will transfer to Nokia Siemens Networks, including employees of large research and development sites in the United States, China and India.