Helsinki: Struggling telecom network equipment maker Nokia Siemens Networks has agreed to sell its fixed line Broadband Access business unit to US firm Adtran as part of a revamp of its operations.
The sale is one of the first divestments for loss-making NSN since it announced plans last month to sell units and axe 17,000 jobs, nearly a quarter of its workforce. The price of the deal - which includes technologies, intellectual property and the existing customer base - was not disclosed.
The companies said in a joint statement the deal was expected to close by the end of April 2012 and some 400 NSN employees would transfer to Adtran.
Adtran said the acquired business would be neutral to diluted earnings per share for the first full year after the deal closed and accretive thereafter.
NSN, which has struggled to make a profit since being set up in 2007, was formed by Finnish cellphone maker Nokia and German conglomerate Siemens in the hope of building enough scale to lead an industry dominated by Sweden's Ericsson and, increasingly, by Chinese entrants. It has faced aggressive pricing from rivals and an economic downturn that has forced telecoms companies to cut spending.