Belgium: GIMV plans purchase of Nokia Siemens Networks' OTN (Open Transport Network) business
GIMV and Nokia Siemens Networks assist OTN's start as an independent business
Nokia Siemens Networks, one of the world`s foremost global enablers of communications services, and GIMV, the leading Belgian investment company specialising in private equity and venture capital, are planning to conclude an asset sale and transfer agreement pertaining to Nokia Siemens Networks’ entire Open Transport Network (OTN) team during the second quarter of 2008. 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 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 in order to ensure the new company`s future leadership position.
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. Nokia Siemens Networks is one of the largest telecommunications infrastructure companies with operations in 150 countries. The company is headquartered in Espoo, Finland. www.nokiasiemensnetworks.com
About GIMV
Since its incorporation in 1980 GIMV has grown into Belgium's most important private equity and venture capital provider. GIMV is also a major European and international market player. Both in Belgium and abroad, GIMV invests in information and communication technology, life sciences and cleantech as well as in growth financing and management buy-outs (MBOs) of companies in more traditional sectors. In the Benelux region the company also targets infrastructure and PPP projects. GIMV currently manages around EUR 2.0 billion of assets (including third party funds). GIMV has been listed on Euronext Brussels since 1997. For more information on GIMV, please go to www.gimv.com.
Nokia Siemens Networks, one of the world`s foremost global enablers of communications services, and GIMV, the leading Belgian investment company specialising in private equity and venture capital, are planning to conclude an asset sale and transfer agreement pertaining to Nokia Siemens Networks’ entire Open Transport Network (OTN) team during the second quarter of 2008. 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 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 in order to ensure the new company`s future leadership position.
About Nokia Siemens Networks
Nokia Siemens Networks is a leading global enabler of communications services. The company provides a complete, well-balanced product portfolio of mobile and fixed network infrastructure solutions and addresses the growing demand for services with 20,000 service professionals worldwide. Nokia Siemens Networks is one of the largest telecommunications infrastructure companies with operations in 150 countries. The company is headquartered in Espoo, Finland. www.nokiasiemensnetworks.com
About GIMV
Since its incorporation in 1980 GIMV has grown into Belgium's most important private equity and venture capital provider. GIMV is also a major European and international market player. Both in Belgium and abroad, GIMV invests in information and communication technology, life sciences and cleantech as well as in growth financing and management buy-outs (MBOs) of companies in more traditional sectors. In the Benelux region the company also targets infrastructure and PPP projects. GIMV currently manages around EUR 2.0 billion of assets (including third party funds). GIMV has been listed on Euronext Brussels since 1997. For more information on GIMV, please go to www.gimv.com.
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