Motorola Inc. plans to purchase assets related to the research and product development portion of Lucent Technologies Inc.’s wireless handset facility in New Jersey.
The two companies have signed a tentative agreement, contingent upon Lucent fully dissolving its partnership with Royal Philips Electronics, and Motorola retaining a certain number of the employees at the facility. The agreement is subject to government approval. Other terms of the agreement were not disclosed.
Philips Electronics and Lucent announced in October plans to dissolve the consumer communications joint venture they established just more than a year ago. The employees, facility and operations are returning to Lucent.
The venture’s short history was mired in delays and disappointments, specifically related to its efforts in the wireless handset arena. In June, the venture scaled back its ambitions for the wireless handset market after financial losses during the first quarter. The situation failed to improve during the second quarter, after which the company announced it would not break even this year as expected, and that market delivery of certain wireless products would be delayed.
Sources indicate the employees are the most valuable asset Motorola is acquiring because there is an industry shortage of engineers and technicians.
