Nokia has sold off one of its least profitable divisions, the division that sold wireless modems, to focus more on its core business and get rid of some dead weight.
Renesas Electronics, a fellow European technology company, has purchased the modem business from Nokia for $200 million. The entire division, including 1100 employees, will be transferred over to Renesas.
The two already had an existing business relationship. Renesas previously licensed some of Nokia's modem technology in its own products.
Despite having licensing agreements with multiple other companies, Nokia was losing money on its modem division. That's because there are other firms that have encroached on the market, and Nokia has more concerns on the phone industry.
The deal was announced this week but it won't be finalized until the end of the year.
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