NewNet (News - Alert) Communication Technologies, which enables global telecom operators and equipment manufacturers to develop next-generation applications that deliver feature-rich, value added services, announced it has completed the initial closing of Nokia (News - Alert) Siemens Networks' WiMAX business, which was once part of Motorola Solutions.
Earlier in November, TMCnet reported that Nokia Siemens Networks (News - Alert) will relegate the WiMAX product portfolio to NewNet, following the company’s decision to focus exclusively on the mobile broadband market.
With this acquisition, NewNet hopes to establish in WiMAX (News - Alert) products and services market. It will expand the customer footprint across the globe with service and support responsibilities for 43 customers across 27 countries.
Following this transaction, NewNet has also assumed the responsibility for the research and development of the WiMAX product portfolio.
"We have worked in close co-operation with the Nokia Siemens Networks team to allow us to integrate the WiMAX technology and product offering quickly and efficiently into NewNet so that we can turn our attention to providing world class service and support to our WiMAX customers," said Ron Pyles, CEO and President of NewNet, in a statement.
"We are tremendously excited to invest NewNet resources to continue to enhance the WiMAX technology to a new level. We see many opportunities to grow this business,” Pyles added. “Key areas of market opportunity include mobile broadband, Smart Grid and public safety solutions."
Skyview Capital is supporting the acquisition. According to Alex Soltani, chairman and CEO of Skyview Capital, “the acquisition brings a blue-chip international customer base and a leading edge 4G-WiMAX technology providing an exceptional platform for further growth, both organically and through additional acquisitions.”
Following the initial closing, nearly 175 employees of WiMAX business is being transferred to NewNet.
NewNet also has plans to add research and development facilities in the UK. The company will also expand its R&D teams in the US and India. It will add significant service and support capabilities in Pakistan, Bahrain and the UAE, with more countries including Hong Kong, China, Malaysia and Taiwan to be added in March.
With the addition of new responsibilities in March, the company will get approximately 125 additional employees added to NewNet across R&D, sales, service and support functions.