Nokia Siemens continues program of sell-offs
Offloads fixed line broadband business to Adtran, intensifying its focus on mobile broadband and making the world's second DSL player
Published: 13 December, 2011
READ MORE: M&A | Nokia Siemens Networks | Fixed-line | Infrastructure
Nokia Siemens continues its process of divesting any businesses which are not core to its new strategy, which is firmly streamlined around mobile broadband and related services. Having sold off its microwave backhaul and WiMAX activities in quickfire succession, it has now announced a larger deal, offloading its fixed line broadband access unit to Adtran, making the latter the world's second largest DSL vendor.
Adtran will acquire the intellectual property, technology and customers of NSN's broadband access business as well as the associated services and network management offerings. Up to 400 employees will transfer when the deal closes. As with the backhaul deal with DragonWave, NSN is not cutting the ties completely and there will still be technology and marketing relationships in place.
The transaction, whose value was not revealed, is expected to close by the end of April 2012, subject to a consultation period and the usual closing conditions.
"We believe that this planned divestment would provide our existing fixed broadband access customers with a continuous high quality service from a company focused on their needs," said NSN's head of mobile broadband, Marc Rouanne, in a statement.
The main product involved in the deal is NSN's hiX line of IP-DSLAM and multiservice access platforms, which have previously compete with Adtran's Total Access 5000. But the hiX has far greater international reach, customized for customers in 26 countries and gaining most of its sales outside north America - while Adtran gets only 10% of its sales beyond the US. The two products will remain as two separate lines after the acquisition although there will be cross-fertilization in creating future offerings since the firms have complementary strengths - Adtran in mobile backhaul and business services, NSN in MPLS and VPLS.
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