"This agreement provides an important strategic opportunity for Nokia Siemens Networks to strengthen its position in two key areas, North America and LTE, at a price that makes good economic sense," said Simon Beresford-Wylie, Chief Executive Officer of Nokia Siemens Networks. "It also represents stability for Nortel’s existing customers and offers a great opportunity for employees to move into a stable future with an industry winner. The R&D organization in Canada would become a long-term wireless center of excellence within Nokia Siemens Networks, complementing our other global sites."
Existing Nortel and Nokia Siemens Networks customers welcomed the agreement. "Verizon views today’s announcement as good news for the global wireless industry," said Dick Lynch, Executive Vice President and Chief Technology Officer of Verizon. "This deal brings together two important Verizon suppliers; we look forward to our continuing work with Nokia Siemens Networks."
"As Nortel’s largest customer in Canada, Bell supports Nokia Siemens’ plan to continue to foster Nortel’s long history of research and development in Canada. Such ongoing technology development is of critical importance as Bell rapidly builds out our advanced next generation wireless networks across Canada," said Stephen Howe, Senior Vice President of Wireless Networks and Chief Technology Officer, Bell Mobility.
Due to Nortel’s restructuring process, the transaction is subject to the approval of the United States Bankruptcy Court and the Ontario Superior Court of Justice. Hearings by those courts to approve bidding procedures, break-up fee and expense reimbursement will be held on or before June 29, 2009, with final sale hearings expected on July 28, 2009 in the US and July 30, 2009 in Canada. Closing of the transaction, which is expected to occur in the third quarter of 2009, remains subject to customary closing conditions, including receipt of necessary regulatory approvals.