Nokia Siemens buys Nortel in $650 million deal

Nokia Siemens Networks said it will buy Canadian-based Nortel Networks in a $650 million deal. Toronto-based Nortel Networks Corp has been operating under bankruptcy protection since January.

Nokia Siemens Networks said on Saturday it will buy Canadian-based Nortel Networks in a $650 million (euro465 million) deal.

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“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,” Nokia Siemens said.

Toronto-based Nortel Networks Corp has been operating under bankruptcy protection since January.

The deal means that more than 2,500 Nortel employees, mostly in Canada and the United States, will be transferred to Nokia Siemens Networks, Nokia Siemens said. Canada’s government-owned export credit agency, Export Development Canada, will support the transaction with a $300 million loan commitment, it said.

Nokia Siemens Networks, a joint venture of Nokia Corp and German Siemens AG, is based in Espoo just outside Helsinki. Nokia Siemens Networks employs 60,000 people worldwide.