11 JUNE 2008 By Stephen Hardy � Nokia Siemens Networks (search for Nokia Siemens) has reached an agreement to sell its Open Transport Network (OTN) assets to GIMV, a Belgian investment company specialising in private equity and venture capital. OTN � not to be confused with equipment based on the ITU-T's Optical Transport Network standards, sells a variety of optical networking equipment to large enterprises for use in private networks.
Terms of the deal were not disclosed. It is expected to be completed in the second quarter of this year and is subject to an information and consultation process with the works council according to local legal practice and final agreement by the two companies.
The group offers three optical node products and interface cards, as well as a network management system. The equipment has been sold to a variety of customers around the world, including train systems, mining concerns, airports, pipelines, and electrical utilities.
Once the sale is complete, GIMV expects to use the OTN team of approximately 80 people to create a new company owned in majority by GIMV. According to a Nokia Siemens Networks spokesman, the team includes the following business units:
- Customer & Market Operations/Solution Sales Management/Network Solutions /Indirect Channels/Open Transport Network)
- Communication Technology & Operations/IP Transport/Next Generation Metro/Product Management /Product Line OTN
- Communication Technology & Operations/IP Transport/Next Generation Metro/Research & Development/Europe/OTN
- Communication Technology & Operations/IP Transport/Technical Support/Product Support/Next Generation Metro/OTN
- Operations/Manufacturing Operations/Integration of New Operations/OTN Belgium.
Most of the team members work in Herentals, Belgium. They perform such functions as R&D; manufacturing; sales, marketing, and solution sales management; technical support; product and program management; and finance.
"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 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."
Nokia Siemens Networks plans to sell OTN products from the new company through direct channels and provide access to its value-added reseller network.
"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."
GIMV says it expects to grow the new company by investing in additional "portfolio elements," extending the sales and distribution reach, and filling any gaps in the support functions. GIMV says it also may explore additional acquisitions.
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