Alcatel-Lucent said Monday it is buying Nortel Networks’ UMTS radio access business and related assets for $320 million.
The deal includes Nortel's UMTS technology, product portfolio, associated patents and assets such as customer contracts. Approximately 1,700 people will join Alcatel-Lucent’s staff, of which about 1,100 are R&D engineers, based mainly in France, Canada and China.
The deal is expected to close by the end of the year; it first has to receive typical regulatory approvals.
"With the acquisition of Nortel's UTRAN group, Alcatel-Lucent will establish itself as a leading supplier of 3G infrastructure,” Michael Thelander of Signals Research Group LLC said. “The combined company will have leading market share across the ITU-defined 3G technologies (UMTS, CDMA2000 and TD-SCDMA) and a noticeable presence with virtually all major fixed and wireless operators around the world.”
Nortel will provide Alcatel-Lucent with setup, infrastructure and application services for a period of time.
Alcatel-Lucent www.alcatel-lucent.com
Nortel Networks www.nortel.com
