Nokia to buy-out Siemens’ portion of Nokia Siemens Networks

Nokia to buy-out Siemens’ portion of Nokia Siemens Networks
With an expected announcement tomorrow, Nokia plans to buy the 50% of its Nokia Siemens Networks venture from Siemens for an unspecified amount under €2 billion ($2.6 billion), using a bridge loan to finance the deal.

Siemens has been looking for an exit strategy from this joint-venture for some time and had recently announced its intent to sell off its stake earlier this year. Nokia Siemens Networks was formed in 2007 and was largely unprofitable until this past year, which is an accomplishment when you consider what the industry has been through over the past few years.

Nokia Siemens Networks makes telecom gear which enables wireless networks and the internet itself to function on a daily basis. Recently it exited the WiMAX area since that standard has failed to gain much traction. Its products are geared for commercial and industrial applications, with several wireless carriers being a customer of Nokia Siemens Networks.

If this news holds up, it would explain the call to convene Nokia’s Board of Directors this past Wednesday, which had many of us wondering what the gang in Espoo, Finland were working on.

source: Bloomberg

UPDATE: Nokia formally announced that it will indeed be buying out the portion of NSN it does not already own from Siemens for €1.7 billion, of which €1.2 billion will be in cash, the remaining €500 million will be paid in the form of a secured loan to Siemens, due one year from the closing of the deal, expected to be final sometime in the third quarter of 2013.

source: Nokia



1. jiezel91

Posts: 67; Member since: Jul 28, 2011

What a relief! At least, it isn't something in the tune of "Nokia to be sold to Microsoft" type of news. I mean, I'm not against Nokia's adoption of Windows Phone. It's just that, I want Nokia to be independent to Microsoft.

2. iguano

Posts: 101; Member since: May 10, 2012

.... i going to stop to beleave what the media sais about the companies... how can a BROKED company buy a half a PROFITABLE division from another company.... I really don't understand the news

4. Maxwell.R

Posts: 218; Member since: Sep 20, 2012

Nokia's cash position is actually pretty good. The company is not so broke anymore. It's not riding the hog like Apple, Samsung or Google, but as of the most recent stats, the company's cash on-hand is greater than its debt. Nokia's maps (NAVTEQ), its feature (S40) devices and its share in NSN are contributors to that reality while the smartphones turn themselves around.

3. aryanfr1

Posts: 125; Member since: Jan 24, 2013

"using a bridge loan to finance the deal" hmmm! is it microsoft who are finacing them??????????? if true then Microsoft hits jackpot Nokia and Siemens :(

5. TechBizJP08

Posts: 495; Member since: Mar 25, 2013

maybe the money came from microsoft. They have a partnership that gives Nokia 1 billion $ yearly. Could have used the money for the separation.. :)

6. theminolaboy

Posts: 128; Member since: May 18, 2013

Regardless if Microsoft financed this deal has nothing to do with Nokia's capability to pull off a billion dollar acquisition. Considering that it's still trying to pull things off? Impressive. They obtained Scalado to power up their mobile photography in the early days of Windows Phone 8 and that's one heck of a deal as well. I am very proud of my Nokia Lumia 720, of how Nokia drives customer satisfaction with the kind of phones they are showing, of how they are trying to be relevant again. This is the manufacturer I've known since the 90's. I hope I can talk to Steve Ballmer. I would say "Work your ass off dude! Windows Phone have a very bright future! "

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