Under the agreement NewNet will acquire the company’s complete WiMAX product portfolio, including all related employees, assets, active customers and supplier contracts. The deal is expected to close before the end of 2011.
“The addition of the WiMAX business would enhance the breadth of NewNet’s product portfolio, R&D capabilities, customer relationships and our overall market position in providing wireless infrastructure solutions to carriers on a global basis,” said Ron Pyles, president and CEO of NewNet.
The deal would see an estimated 300 NSN employees transfer to NewNet, the majority of which are based in the US city of Chicago and the Chinese city of Hangzhou.
The WiMAX business was formerly part of Motorola Solutions’ networks division which the company sold to NSN earlier this year.
Last week, NSN announced the launch of an extensive global restructuring programme aimed at focusing its operations on mobile broadband. The programme will include 17,000 cuts to its global workforce by the end of 2013.
