STOCKHOLM--Nokia Siemens Networks on Monday said it's selling
its optical networks business to Los Angeles-based private
investment firm Marlin Equity Partners for an undisclosed sum.
The network joint venture of Nokia Corp. (NOK) and Siemens AG
(SI) said up to 1,900 employees, mainly in Germany, Portugal and
China, would transfer to a new company established by Marlin Equity
Partners as a result of the transaction.
NSN had approximately 60,000 employees by the end of the third
quarter this year.
The Finnish-German joint venture added that the deal is part of
its efforts to focus solely on mobile broadband rather than other
communication infrastructure, such as the fiber-optic communication
technology developed by the optical network business.
NSN just reported surprisingly good third-quarter results, as it
undergoes a major restructuring strategy launched in late 2011,
refocusing the business on equipment to provide mobile internet
access.
Last year it began divesting a number of business units that it
considers "non-core," and pledged to cut nearly a quarter of its
staff, or 17,000 people, in an effort to reach profitability and
position itself for independence.
The targeted job cuts don't include staff transferred through
divestment, NSN said Monday.
Marlin Equity Partners, a private equity firm with over $1
billion of capital under management, intends to build "an industry
leader in the fragmented optical networking sector" through its
acquisition of the NSN unit. The transaction is expected to close
in the first quarter of 2013.
At 0915 GMT shares in Nokia traded 0.9% lower at EUR2.528.
Write to Sven Grundberg at sven.grundberg@dowjones.com; Twitter:
@svengrundberg
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