Nokia plans to sell Optical Networks business

Nokia plans to sell Optical Networks business

Summary: Nokia Siemens Networks has agreed to sell its Optical Networks business as part of company restructuring.

SHARE:
TOPICS: Nokia, Tech Industry
0
nokia siemens networks sells optical networks

Nokia Siemens Networks will sell its Optical Networks business to Marlin Equity Partners in order to focus on mobile broadband.

The Finland-based venture between Nokia and Siemens issued a statement on Monday, stating that Marlin Equity Partners will take its Optical Networks business off the company's hands, in order to make the branch an independent new company with the goal of "becoming a leading provider in the optical market."

The mobile equipment maker says that the move will help bring the company further into line as a mobile broadband specialist, and will furthermore improve the "strategic focus" on core segments of the business.

Los Angeles California-based Marlin Equity Partners is a private investment firm which plans to headquarter the new company in Munich, Germany. The optical drive business will be headed by its current management team, and Herbert Merz will act as CEO.

The sale of Optical Networks is expected to be completed by the first quarter of 2013, although no financial details have been disclosed. 1900 employees, mainly based in Germany, Portugal and China, are expected to transfer to the new firm.

Nokia Siemens Networks currently operates in 150 countries. Earlier this month, the joint venture closed a German plant, resulting in a loss of 650 jobs in Bruchsal, and the sale of Optical Networks is simply the latest effort in company restructuring -- which is expected to result in €1 billion ($1.3bn) cost savings by the end of next year.

The firm said earlier this year it plans to eventually cut one quarter of its global workforce. 

Topics: Nokia, Tech Industry

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

0 comments
Log in or register to start the discussion