Nokia Siemens Networks will acquire the majority of Motorola's wireless operations for US$1.2 billion in a major thrust to gain a stronger foothold worldwide, the company said Monday.

The company said the deal is "expected to significantly strengthen Nokia Siemens Networks' presence globally, particularly in the United States and Japan."

Nokia Siemens said it will "gain incumbent relationships with more than 50 operators," including top American wireless carriers and cable companies, including Verizon Wireless and Sprint Nextel Corp.

It will also improve its position with Chinese operator China Mobile as well as Clearwire, KDDI, Sprint and Vodafone.

Nokia Siemens Networks - a joint venture between Finland's Nokia Corp and Siemens AG of Germany - has seen dwindling profits in recent years, worsened by the global economic downturn.

The new contract, expected to be completed by the yearend, would improve profitability and "have significant upside potential," Nokia Siemens said.

The deal is a step in the process of breaking up Schaumburg, Illinois-based Motorola. The company has planned for years to spin off the cell phone division, but steep losses in the unit have forced it to postpone the move. It's now scheduled for the first quarter of next year.

The handset division, to be called Motorola Mobility, will take with it the division that makes cable set-top boxes.

That will leave Motorola Solutions, the remainder, focused on government and corporate clients, with products like police radios and bar-code scanners.

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