With Motorola about to split into two companies — one for consumer electronics and one for mobile products — it seems a few pieces are about to be pared off completely from the company. The first chunk sold off today went to Nokia Siemens, which purchased Motorola’s wireless chip business for $1.2 billion.
As IT ChannelPartner notes, the deal is seen as a win all around. It strengthens Nokia Siemens in the chip business and gets it into some major international markets, and it gives Motorola some bucks to continue the fight against the iPhone.
Nokia Siemens Networks, a joint venture of Finland’s Nokia Oyj and Germany’s Siemens AG, said it will pay $1.2 billion in cash for the greater part of Motorola Inc.’s wireless operations, a move it expects will yield a stronger foothold in the U.S. and Japan and pump up declining profits.
The companies said that the deal, which will be financed from current Nokia Siemens cash reserves and third-party financing already in place, will close at the end of this year.