Nokia announced on Wednesday that it has completed the acquisition of NSN which it co-founded with Siemens Networks back in 2006 to focus on network infrastructures – both wired and wireless.
The Finnish company shelled out $2.2 billion to buy Siemens share in NSN. Out of the total amount Nokia paid $1.55 billion in cash while the rest $650 million “will be paid in the form of a secured loan from Siemens due one year from closing,” said Nokia.
Through the acquisition Nokia aims to create value for its shareholders while also planning to develop NSN as an independent unit. Rajeev Suri will continue as the CEO of the company while Jesper Ovesen will continue to be the executive chairman of the NSN board.
Nokia said in a statement, “In accordance with this transaction, the Siemens name is being phased out from Nokia Siemens Networks’ company name and branding. The new name and brand is Nokia Solutions and Networks, also referred to as NSN, which will be used also for financial reporting purposes.”
Nokia Siemens Networks wasn’t able to come out with flying colours in its domain because of strong competition from the likes of Ericsson and Huawei Technologies and after five years in 2011, it decided to go on a little soul search while axing a whopping 17,000 of its workforce. The joint venture looked at narrowing its focus to just mobile broadband and related services – a strategy that paid off as it managed to post profits for the last four quarters.