Nokia Siemens Networks signs agreement with Nor...
Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this
announcement.
----------------------------------------------------------------------
--------------
Planned acquisition will keep Canada at the forefront of
next-generation wireless research and development; strengthen Nokia
Siemens Networks in North America and LTE
Espoo, Finland - Nokia Siemens Networks has taken a significant step
towards strengthening its leadership in Long Term Evolution, or LTE,
next generation wireless technology and expanding its market presence
in North America with an agreement to acquire key assets from Nortel.
The planned USD 650 million acquisition, which will bring together
the highly complementary assets of the two companies in the field of
mobile radio access, adds further key talent and resources to enhance
Nokia Siemens Networks' existing strength and momentum in LTE. The
acquisition of Nortel's profitable CDMA business would significantly
improve Nokia Siemens Networks' presence in North America and make it
a leading supplier of wireless infrastructure products in the region.
"This agreement provides an important strategic opportunity for Nokia
Siemens Networks to strengthen its position in two key areas, North
America and LTE, at a price that makes good economic sense," said
Simon Beresford-Wylie, Chief Executive Officer of Nokia Siemens
Networks. "It also represents stability for Nortel's existing
customers and offers a great opportunity for employees to move into a
stable future with an industry winner. The R&D organization in Canada
would become a long-term wireless center of excellence within Nokia
Siemens Networks, complementing our other global sites."
Existing Nortel and Nokia Siemens Networks customers welcomed the
agreement. "Verizon views today's announcement as good news for the
global wireless industry," said Dick Lynch, Executive Vice President
and Chief Technology Officer of Verizon. "This deal brings together
two important Verizon suppliers; we look forward to our continuing
work with Nokia Siemens Networks."
"As Nortel's largest customer in Canada, Bell supports Nokia Siemens'
plan to continue to foster Nortel's long history of research and
development in Canada. Such ongoing technology development is of
critical importance as Bell rapidly builds out our advanced next
generation wireless networks across Canada," said Stephen Howe,
Senior Vice President of Wireless Networks and Chief Technology
Officer, Bell Mobility.
"This news eliminates industry uncertainty and enhances CDMA and
EVDO, today and in the future. We at Sprint are pleased to have the
support of a strong and stable supplier to continue to deliver
reliable technology and services that our customers rely on every
day," said Dan Hesse, President and Chief Executive Officer, Sprint
Nextel.
"Bringing these assets of Nortel together with Nokia Siemens Networks
is good for customers like TELUS and good for Canada," said Eros
Spadotto, Executive Vice-President, Technology Strategy of TELUS. "As
TELUS invests in building a next generation wireless network, we are
pleased by Nokia Siemens Networks' strong desire to maintain a strong
R&D presence in Canada, helping keep the country at the forefront of
advanced wireless technology."
The transaction would see more than 2,500 Nortel employees - largely
located in Ottawa, Canada and Dallas, United States but also
including employees in Mexico and China - transferred to Nokia
Siemens Networks. Approximately 400 of those employees are focused on
LTE research and development, and would enhance the ability of Nokia
Siemens Networks to provide innovation and strengthen its position in
LTE, where it is already working with customers such as NTT Docomo in
Japan. The support and development of Nokia Siemens Networks'
existing product lines would be unaffected by this acquisition.
Export Development Canada (EDC), Canada's government-owned export
credit agency, is supporting this transaction with a USD 300 million
loan commitment. "We are delighted to have secured the backing of EDC
for this transaction," said Luca Maestri, Chief Financial Officer of
Nokia Siemens Networks. "Nokia Siemens Networks is committed to
Canada as an important center of excellence for next-generation
wireless technology."
Due to Nortel's restructuring process, the transaction is subject to
the approval of the United States Bankruptcy Court and the Ontario
Superior Court of Justice. Hearings by those courts to approve
bidding procedures, break-up fee and expense reimbursement will be
held on or before June 29, 2009, with final sale hearings expected on
July 28, 2009 in the US and July 30, 2009 in Canada. Closing of the
transaction, which is expected to occur in the third quarter of 2009,
remains subject to customary closing conditions, including receipt of
necessary regulatory approvals.
About Nokia
Nokia is a pioneer in mobile telecommunications and the world's
leading maker of mobile devices. Today, we are connecting people in
new and different ways - fusing advanced mobile technology with
personalized services to enable people to stay close to what matters
to them. We also provide comprehensive digital map information
through NAVTEQ; and equipment, solutions and services for
communications networks through Nokia Siemens Networks.
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of
telecommunications services. With its focus on innovation and
sustainability, the company provides a complete portfolio of mobile,
fixed and converged network technology, as well as professional
services including consultancy and systems integration, deployment,
maintenance and managed services. It is one of the largest
telecommunications hardware, software and professional services
companies in the world. Operating in 150 countries, its headquarters
are in Espoo, Finland. www.nokiasiemensnetworks.com
Engage in conversation about Nokia Siemens Networks' aim to reinvent
the connected world at
http://unite.nokiasiemensnetworks.com and talk
about its news at
http://blogs.nokiasiemensnetworks.com
Find out if your country is exploiting the full potential of
connectivity at
http://connectivityscorecard.org
It should be noted that certain statements herein which are not
historical facts, including, without limitation, those regarding: A)
the timing of product, services and solution deliveries; B) our
ability to develop, implement and commercialize new products,
services, solutions and technologies; C) our ability to develop and
grow our consumer Internet services business; D) expectations
regarding market developments and structural changes; E) expectations
regarding our mobile device volumes, market share, prices and
margins; F) expectations and targets for our results of operations;
G) the outcome of pending and threatened litigation; H) expectations
regarding the successful completion of contemplated acquisitions on a
timely basis and our ability to achieve the set targets upon the
completion of such acquisitions; and I) statements preceded by
"believe," "expect," "anticipate," "foresee," "target," "estimate,"
"designed," "plans," "will" or similar expressions are
forward-looking statements. These statements are based on
management's best assumptions and beliefs in light of the information
currently available to it. Because they involve risks and
uncertainties, actual results may differ materially from the results
that we currently expect. Factors that could cause these differences
include, but are not limited to: 1) the deteriorating global economic
conditions and related financial crisis and their impact on us, our
customers and end-users of our products, services and solutions, our
suppliers and collaborative partners; 2) the development of the
mobile and fixed communications industry, as well as the growth and
profitability of the new market segments that we target and our
ability to successfully develop or acquire and market products,
services and solutions in those segments; 3) the intensity of
competition in the mobile and fixed communications industry and our
ability to maintain or improve our market position or respond
successfully to changes in the competitive landscape; 4)
competitiveness of our product, services and solutions portfolio; 5)
our ability to successfully manage costs; 6) exchange rate
fluctuations, including, in particular, fluctuations between the
euro, which is our reporting currency, and the US dollar, the
Japanese yen, the Chinese yuan and the UK pound sterling, as well as
certain other currencies; 7) the success, financial condition and
performance of our suppliers, collaboration partners and customers;
8) our ability to source sufficient amounts of fully functional
components, sub-assemblies, software and content without interruption
and at acceptable prices; 9) the impact of changes in technology and
our ability to develop or otherwise acquire and timely and
successfully commercialize complex technologies as required by the
market; 10) the occurrence of any actual or even alleged defects or
other quality, safety or security issues in our products, services
and solutions; 11) the impact of changes in government policies,
trade policies, laws or regulations or political turmoil in countries
where we do business; 12) our success in collaboration arrangements
with others relating to development of technologies or new products,
services and solutions; 13) our ability to manage efficiently our
manufacturing and logistics, as well as to ensure the quality,
safety, security and timely delivery of our products, services and
solutions; 14) inventory management risks resulting from shifts in
market demand; 15) our ability to protect the complex technologies,
which we or others develop or that we license, from claims that we
have infringed third parties' intellectual property rights, as well
as our unrestricted use on commercially acceptable terms of certain
technologies in our products, services and solutions; 16) our ability
to protect numerous Nokia, NAVTEQ and Nokia Siemens Networks
patented, standardized or proprietary technologies from third-party
infringement or actions to invalidate the intellectual property
rights of these technologies; 17) any disruption to information
technology systems and networks that our operations rely on; 18)
developments under large, multi-year contracts or in relation to
major customers; 19) the management of our customer financing
exposure; 20) our ability to retain, motivate, develop and recruit
appropriately skilled employees; 21) whether, as a result of
investigations into alleged violations of law by some former
employees of Siemens AG ("Siemens"), government authorities or others
take further actions against Siemens and/or its employees that may
involve and affect the carrier-related assets and employees
transferred by Siemens to Nokia Siemens Networks, or there may be
undetected additional violations that may have occurred prior to the
transfer, or violations that may have occurred after the transfer, of
such assets and employees that could result in additional actions by
government authorities; 22) any impairment of Nokia Siemens Networks
customer relationships resulting from the ongoing government
investigations involving the Siemens carrier-related operations
transferred to Nokia Siemens Networks; 23) unfavorable outcome of
litigations; 24) allegations of possible health risks from
electromagnetic fields generated by base stations and mobile devices
and lawsuits related to them, regardless of merit; as well as the
risk factors specified on pages 11-28 of Nokia's annual report on
Form 20-F for the year ended December 31, 2008 under Item 3D. "Risk
Factors." Other unknown or unpredictable factors or underlying
assumptions subsequently proving to be incorrect could cause actual
results to differ materially from those in the forward-looking
statements. Nokia does not undertake any obligation to publicly
update or revise forward-looking statements, whether as a result of
new information, future events or otherwise, except to the extent
legally required.
Media Enquiries:
Nokia Siemens Networks
Ben Hunt
Communications
Tel. +44 7508 002382
Email: ben.hunt@nsn.com
Investor Enquiries:
Nokia Investor Relations Europe
Tel. +358 7180 34289
Nokia Investor Relations US
Tel. +1 914 368 0555
www.nokia.com
www.nokiasiemensnetworks.com
--- End of Message ---
NOKIA
P.O. Box 226<br>FIN-00045 NOKIA GROUP Espoo
WKN: 870737;
ISIN: FI0009000681; Index: DJ STOXX Large 200, DJ STOXX 50;
Listed: Nordic list (Large Cap) in THE HELSINKI STOCK EXCHANGE;
Latest directors dealings
- 9 hours ago Close Brothers Group
- 9 hours ago Savannah Energy
- 10 hours ago Mid Wynd International Inv Trust
- 10 hours ago Dillistone Group
- 10 hours ago SSP Group