Nokia Networks today announced that it has agreed to acquire part of the wireless networks business of Panasonic System Networks Company. 

Nokia said the agreement covers Panasonic’s LTE/3G wireless base station system business for mobile operators and related wireless equipment system business.

Financial terms of the agreement were not disclosed and the companies hope to have the deal sealed by the end of September, with expected closure scheduled on January 1, 2015. 

Under the terms of the agreement, all fixed assets and business contracts with Panasonic’s customers are being transferred to Nokia Networks in Japan, including Panasonic employees involved in the business.

Ashish Chowdhary, executive vice president, AMEA, for Nokia Networks, called Japan a key market for Nokia, saying the agreement is a major milestone in forging closer ties in Japan. 

“The acquisition of part of Panasonic’s wireless network business would further strengthen our mobile broadband portfolio and add significant value for Japanese operators,” Chowdhary said in a statement. 

Nokia said that it aims to improve efficiency and quality control for product development and R&D, as well as strengthen its market share for base station systems and related wireless equipment in Japan.