Nokia to sell wireless modem biz for USD 200 mn
Nokia will sell its wireless modem business to Japan's Renesas Electronics Corp for about USD 200 million, as part of the Finnish cell phone maker's strategy to focus on its core businesses.Updated: Jul 06, 2010 19:10 IST
Nokia will sell its wireless modem business to Japan's Renesas Electronics Corp for about USD 200 million, as part of the Finnish cell phone maker's strategy to focus on its core businesses.
The deal would also see the transfer of around 1,000 of Nokia's R&D employees -- a majority of them located across Finland, India, UK and Denmark -- to the Japanese entity, the two companies said in a joint statement today.
Both the firms had entered into a strategic alliance to develop modem technologies for Evolved High-Speed Packet Access/Long-Term Evolution (HSPA+/LTE), widely used for wireless applications.
"As part of this alliance, the companies have entered into an agreement whereby Renesas Electronics is to acquire Nokia's wireless modem business for approximately USD 200 million," the statement said. Subject to regulatory approvals, the deal is expected to attain completion during the fourth quarter of 2010.
According to the two firms, the tie-up would be enhanced by long-term joint research cooperation on future radio technologies. As part of the acquisition, Renesas would acquire Nokia's wireless modem technologies for LTE, HSPA and GSM standards, which have been used in billions of handsets worldwide.
The Finnish firm would also transfer certain patents to Renesas, a leading supplier of advanced semiconductor solutions. "The alliance enables us to continue to focus on our own core businesses, connecting people to what matters to them with our mobile products and solutions," Nokia Executive Vice President Kai Oistamo said.
The two firms have been working together to develop an industry-leading HSPA+/LTE platform, the statement added. "In order to implement the planned business transfer, Nokia will start the appropriate personnel consultation process with its personnel representatives, according to each applicable jurisdiction's labour law requirements," it added.