GEC will buy Nokia's SDH/DWDM transport equipment business

17 Jun 2002

Marconi Communications, a subsidiary of GEC, will purchase Nokia's Synchronous Digital Hierarchy / Dense Wave Division Multiplexing (SDH/DWDM) transport equipment business for up to Finnish Marks 622 million (USD 110 million). This will consist of an initial payment of Finnish Marks 430 million (USD 76 million) in cash, followed by up to Finnish Marks 192 million (USD 34 million), depending on the future performance of the business.

Approximately 120 of the people currently working at Nokia's research and development unit in Cambridge, UK, will move to Marconi. Nokia says that other employees involved in SDH / DWDM related research and development will have new jobs within Nokia.

Marconi and Nokia have also signed an OEM agreement, under which Marconi will supply Nokia with SDH / DWDM products. Nokia will continue to supply these products and services to certain customers.

If the acquisition is approved, it is scheduled for completion in December 1999.

SH