Nokia buys out Siemens from network venture
Nokia is acquiring Siemens' entire 50% stake in their joint venture, Nokia Siemens Networks (NSN). The purchase price for the stake is EUR 1.7 billion.
Espoo, Finland – Nokia Corporation and Siemens AG announced today that Nokia is acquiring Siemens' entire 50% stake in their joint venture, Nokia Siemens Networks (NSN).
The transaction, valued at EUR 1.7 billion, is expected to close during the third calendar quarter of 2013. Upon completion, Nokia Siemens Networks will become a wholly owned subsidiary of Nokia, strengthening Nokia's strategic control over the network business.
Nokia President and CEO Stephen Elop stated that Nokia Siemens Networks has structurally improved its operational and financial performance and established a clear leadership position in LTE, presenting an attractive growth opportunity for Nokia.
Nokia Siemens Networks was formed on April 1, 2007, combining Nokia's Networks Business Group and Siemens' carrier-related operations. It has since become a leading global provider of telecommunications infrastructure, deploying networks in over 150 countries.
Siemens' name will be phased out from the company name and branding at closing. Of the EUR 1.7 billion purchase price, EUR 1.2 billion will be paid in cash, with the remaining EUR 0.5 billion paid as a secured loan due one year after closing.