Nokia sells modem business unit to Renesas for $200mn

nokiaOne of the top five semiconductor makers in the world, Japan-based Renesas Electronics Corp., has entered into a definitive agreement with the Finnish phone maker, Nokia, to acquire part of the firms mobile operations.

The deal worth $200-million, will give Renesas exclusive ownership over previously held Nokia assets, including various GSM patents, and will see the acquisition of Nokia’s modem business unit.

Additionally as part of the deal, the company will also acquire a part of Nokia’s research and development division, which will consist of about 1,100 Nokia professionals who work mainly in Finland and India.

More specifically, the deal marks a strategic alliance between the two firms to jointly work on further developing mobile HSPA wireless technologies.

HSPA (High-Speed Packet Access) will soon become the next-generation wireless technology that mobile devices will utilize to access higher speed Internet connections.

The deal is expected to close by the end of this year, subject to regulatory approval.

The news of the modem unit sale comes as Nokia faces intensifying competition from Google and Apple.

Only a day ago, Nokia confirmed the company has no plans to develop any device powered by Google Android, instead opting with the Symbian platform that it developed.

Renesas is currently owned by Mitsubishi, Hitachi, and NEC, following mergers.

The Nokia stock (NYSE:NOK) closed down close to a percent to $8.38 per share in today’s trading session.


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Ramy holds a Bachelor in Health Studies with honors in Health Management from York University in Toronto, Canada. He just returned to Toronto following a career opportunity teaching English in South Korea. Write to ramy@business2press.com
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    Nice to know the information. Nokia offers very good services and their products are always outstanding. Thanks for sharing the information. keep posting.

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