Nokia Siemens Networks and Marlin Equity Partners on Monday announced that they had reached an agreement for Nokia Siemens Networks to sell its Optical Networks business unit to Marlin Equity Partners.
The deal would result in the unit being established as an independent company.
"This transaction builds on that momentum and aims to provide a new home for the Optical Networks business with the focus, resources and strategic flexibility to address the opportunities in the optical market," said Rajeev Suri, chief executive officer at Nokia Siemens Networks.
Marlin Equity Partners, a Los Angeles California-based private investment firm with over USD $1 billion of capital under management, has formed a new company and intends to act as a consolidator, building an industry leader in the fragmented optical networking sector.
The new optical company will be headquartered in Munich, Germany with operations around the world and will be led by its existing management team with Herbert Merz nominated as chief executive officer.
Optical Networks is a leader in the long-haul and ultra-long-haul segment of the optical market with strong technology in the emerging 100G optical transmission area and a tier one global customer base.
As a result of the transaction up to 1,900 employees - mainly in Germany, Portugal and China - from the optical business unit and related functions are expected to transfer to the new company in line with applicable local legal requirements.
The transaction is expected to close in the first quarter of 2013.
Nokia Siemens Networks is undertaking a cost-cutting plan, which includes laying off a quarter of its staff and selling product lines to focus on mobile broadband.