Belgian private equity group, GIMV has brought the entire Open Transport Network (OTN) division at Nokia Siemens Networks for a undisclosed amount. The planned transfer is subject to an information and consultation process with the works council according to local legal practice and final agreement by both companies.
Upon the closing of the transaction, expected to take place in the second quarter of 2008, Nokia Siemens Networks and GIMV will transfer the OTN team of approximately 80 people into a newly formed company owned in majority by GIMV. OTN management and employees will be given the opportunity to participate in the to-be established company. The planned transfer will include key functions in R&D, Manufacturing, Sales, Technical Support, Finance as well as Product and Program Management.
“The transferring of certain capacities to trusted business partners is part of Nokia Siemens Networks’ overall strategy to remain focused on its core business competencies and realize two billion Euros annually in synergy savings by the end of 2008,” says Karl Friedrich, Head of Business Line Next Gen Metro, Nokia Siemens Networks. “OTN already has an extremely strong international presence, an experienced team and a stable business. GIMV will ensure OTN’s leading role in the industry by making further future-securing investments, which will put the new company in an excellent position to further expand its business.” In addition, Nokia Siemens Networks would continue to sell OTN products through direct channels and open up its Value Added Reseller network to OTN.
In the new set-up as a stand-alone company, GIMV’s first priority will be to ensure a smooth transition of the OTN business. “We will support all customer and supplier commitments that are currently with OTN,” says Bart Diels, Investment Director of GIMV. “This will preserve existing customer relationships and set the pace for future growth.”
Together with the management and personnel of OTN, GIMV wants to grow the stand-alone company by investing in additional and complementary portfolio elements, extending the sales and distribution reach and filling the gaps in the support functions. Besides this focus on internal growth, add-on acquisitions may be explored.
Posted to the site on 11th June 2008
Posted to: www.cellular-news.com/story/31734.php