Nokia Siemens to Sell Business Support Systems to Redknee

   By Gustav Sandstrom 
 

Network equipment vendor Nokia Siemens Networks said Wednesday it plans to sell its Business Support Systems unit to Canadian telecommunications software and service company Redknee Solutions Inc. (RKN.T) as the company shifts its focus more towards mobile broadband services.

If the deal is finalized, Redknee will pay a total consideration of 15 million euros ($19.6 million) in cash at closing, plus a maximum of EUR25 million over 12 to 36 months after the deal's closure, it said.

The sale, which is expected to close in the first half of 2013, is subject to approval by regulators and exchanges and a consultation process with trade union representatives, Nokia Siemens said.

Around 1,200 employees would transfer to Redknee, the company said, adding that it would also involve a transfer of customers and supplier contracts, intellectual property rights and fixed assets.

The Business Support Systems business provides services including real-time charging, rating, policy and customer care to mobile operators.

Nokia Siemens is a joint venture between Finland's Nokia Corp. (NOK) and Germany's Siemens AG (SI).

At 0818 GMT, shares in Nokia were up 6.3% at EUR2.68 against a 1.5% rise in the wider Helsinki market.

Write to Gustav Sandstrom at [e-mail]

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