Nokia Networks is set to acquire part of the wireless networks business of Panasonic System Networks Company.
The acquisition will strengthen its mobile broadband portfolio and add significant value for Japanese telecom operators.
Nokia Networks posted 7 percent increase in mobile broadband business in the second quarter of 2014.
The company achieved 5 percent growth in revenue growth in Asia Pacific including India, Japan and other nations – but excluding China.
The agreement covers Panasonic’s mobile phone (LTE/3G) wireless base station system business for mobile operators and related wireless equipment system business.
Nokia Networks did not share financial details.
Nokia under the aegis of CEO Rajeev Suri announced three telecom acquisition deals in the last six months.
Fixed assets and business contracts with Panasonic’s customers will be transferred to Nokia Networks in Japan, including Panasonic employees involved in the business.
“Japan is a key market for us, and this agreement is a major milestone in forging closer ties in Japan,” said Ashish Chowdhary, executive vice president, AMEA, Nokia Networks.
Nokia Networks aims to improve efficiency and quality control for product development and R&D, as well as strengthen its market share for base station systems and related wireless equipment in Japan.
In addition, Nokia Networks plans to leverage its extensive global experience and technical leadership in mobile broadband to grow its business in the acquired domestic carrier segment globally.
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