Nokia Alvarion

Nokia-Siemens Networks

Acquires Alvarion

Table of Contents

1) Nokia Siemens Networks – Background 3

2) Alvarion – Background 4

3) Data Explosion, Mobile Offload & Carrier-Grade Wi-Fi 6

4) Motivation for Acquisition 8

5) Alvarion evaluation 10

a) Alvarion stand-alone valuation 10

b) Alvarion-NSN Synergy valuation 11

c) Pricings: 13

6) Probability for success - Bidding side 14

7) Probability for success - Integration side 15

8) Post-Merger Integration 16

a) R&D - PRESERVATION. 17

b) Customer Base –SYMBIOSIS. 17

c) Additional aspects of the integration: 18

Appendix A: Alvarion's 2012 financial report 19

Appendix B: M&A revenue multiples in the industry 20

Appendix C: Alvarion/NSN expected revenue and terminal value 21

Appendix D: NSN range for annual return on investment 22

1) Nokia Siemens Networks – Background

Nokia Siemens Networks (hereinafter: “NSN” or “the company”) was created as the result of a joint venture between Siemens Communications and Nokia's Network Business Group. NSN is one of the largest Telecommunications equipment suppliers. NSN is a Tier-1 supplier for mobile operators, providing End-to-end solutions (Vertical Player). The company operates in more than 150 countries worldwide and has about 58,000 employees.

NSN revenues were 13.1 Billion Euro in 2012 (14.041 B Euro in 2011) and the Operating Income was 822 Million Euro in 2012. The company’s headquarters is located in Finland, with additional hubs in Munich and a Service Division in India.

In 2011 NSN announced that it focuses its strategy on mobile network infrastructure and services market. NSN estimated the market at 70 Billion Euro in 2011, in which it holds the position of a “strong second”.

Rajeev Suri, chief executive officer of Nokia Siemens Networks said: “At the same time, we need to take the necessary steps to maintain long term competitiveness and improve profitability in a challenging telecommunications...