Motorola buys Lucent wireless R&D unit

Motorola earlier this week said it would buy the assets of the research and development portion of Lucent Technologies' wireless-phone facility in Piscataway, New Jersey.

Financial details of the purchase were not disclosed, but the Wall Street Journal reported an acquisition price of between $US100 million and $200 million for the facility.

Motorola intends to operate the facility as a design center for digital wireless handset technology, the company said in a statement. The majority of the employees involved in research and development at the Piscataway facility have joined Motorola, Motorola said. About 300 engineers are employed at the facility, according to one news report.

The facility was the former site of a short-lived joint mobile phone venture between Lucent and Dutch electronics company Royal Philips Electronics. Calling the venture "a disappointment for both partners," and citing adverse income developments, the two companies announced in October that they were ending the venture, after only one year of operation. Philips had held 60 percent of the venture, and Lucent held 40 percent.

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