Nokia To Sell Modem Business To Renesas Electronics

Nokia has announced that it has sold its modem business to Renesas Electronics. The two companies will also form a strategic alliance for the continued development of modem technology. Renesas will acquire Nokia's HSPA, GSM and LTE modem business.

Nokia is selling the modem portion of its business for about $200 million and the two companies plan to collaborate on future radio technologies. Nokia says that the sale will allow it to focus more on its core business categories.

Renesas has been licensing the Nokia modem tech since 2009 and the two firms have been working together on HSPA+/LTE modems already. The sale of the business is subject to regulatory approvals and other closing conditions and is expected to be closed in Q4 2010.