MOBILE AND WIRELESS COMPANY Nokia Siemens has announced that it will buy Motorola's wireless network equipment unit for $1.2 billion.
The deal should be sorted out by the end of 2010 and Nokia Siemens will be acquiring at least 50 of Motorola's corporate customers along with the usual assets, products, real estate, plants and employees.
Motorola co-CEO Greg Brown said in a statement that he chatted with a few potential buyers but Nokia Siemens made the most sense financially, strategically and from a people and culture standpoint.
Motorola's 7,500 employees in the United States, India and China will be transfered to Nokia Siemens and no layoffs are planned.
Motorola has a cunning plan to split itself into two independent companies. One focused entirely on handsets will be called Motorola Mobility and will be under co-CEO Sanjay Jha.
The other called Motorola Solutions will focus on professional safety equipment and will be under Brown.
Motorola, which once did quite well with its Flip and Razr lines of mobile phones, has lost a lot of ground over the last few years to Research In Motion, Sony Ericsson, Samsung and Nokia. µ
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