Nokia 2010 Annual Report Download - page 37

The acquisition is subject to customary closing conditions, including regulatory approvals, and is
subject to certain risks and uncertainties, including:
• The acquisition does not receive all regulatory approvals or fulfil closing conditions and does
not close in a timely manner, or at all.
• The financial data on which the decision to undertake the acquisition was based on is
materially inaccurate
• The difficulty in integrating the acquired business in an efficient and effective manner.
• The challenges in achieving the strategic objectives, cost savings and other benefits from the
acquisition.
• Existing customers of the acquired business may be reluctant, unwilling or unable to maintain
their customer relationship with Nokia Siemens Networks after the acquisition.
• The markets of the acquired business do not evolve as anticipated and the technologies
acquired do not prove to be those needed to be successful in those markets.
• Nokia Siemens Networks may not successfully access the acquired business’ existing product
markets due to a lack of requisite capabilities, regulatory reasons or otherwise.
• The potential loss of key employees of the acquired business.
• The risk of diverting the attention of senior management from Nokia Siemens Networks’
operations.
• The risks associated with integrating financial reporting and internal control systems.
• Difficulties in expanding information technology systems and other business processes to
accommodate the acquired business.
• Impairments of goodwill could arise as a result of the acquisition.
• Unexpected contingent or undisclosed liabilities may be acquired with the acquired business
and agreed indemnities may provide insufficient coverage against such liabilities.
• If Nokia Siemens Networks does not successfully crosssell its existing products and services to
customers of the acquired business, Nokia Siemens Networks may not realize the expected
expansion of its customer base.
Nokia Siemens Networks’ may fail to effectively and profitably invest in new products,
services, upgrades and technologies and bring them to market in a timely manner.
The mobile and fixed networks infrastructure and related services market is characterized by rapidly
changing technologies, frequent new solutions requirements and product feature introductions and
evolving industry standards.
Nokia Siemens Networks’ success depends to a significant extent on the timely and successful
introduction of new products, services and upgrades of current products to comply with emerging
industry standards and to address competing technological and product developments carried out by
Nokia Siemens Networks’ competitors. The research and development of new and innovative
technologicallyadvanced products, including the introduction of new radio frequency technologies, as
well as upgrades to current products and new generations of technologies, is a complex and
uncertain process requiring high levels of innovation and investment, as well as accurate anticipation
of technology and market trends. Nokia Siemens Networks may focus its resources on technologies
that do not become widely accepted or ultimately prove not to be viable. Nokia Siemens Networks’
sales and operating results will depend to a significant extent on its ability to maintain a product
portfolio and service capability that is attractive to its customers; to enhance its existing products; to
continue to introduce new products successfully and on a timely basis and to develop new or enhance
existing tools for its services offerings.
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