Nokia and Alcatel-Lucent to combine forces
Nokia and telecoms-equipment company Alcatel-Lucent have agreed to the terms of a merger that could accelerate developments in the Internet of Things and the cloud
Alcatel-Lucent's Michel Combes (l) and Nokia's Rajeev Suri (r) meet in Paris. The two companies are hoping by combining they can accelerate developments in the Internet of Things and the cloud
Nokia has agreed to a €15.6bn all-share takeover deal with French rival Alcatel-Lucent in a bid to create an “innovation leader in next generation technology and services for an IP connected world,” according to a joint company statement. The merger, once approved, will cement Nokia’s status as a major provider of networking equipment; greater even than market leader and Swedish rival Ericsson.
Early signs indicate that the proposed transaction will close in the opening half of 2016
“Together, Alcatel-Lucent and Nokia intend to lead in next-generation network technology and services, with the scope to create seamless connectivity for people and things wherever they are,” said Nokia’s president and CEO Rajeev Suri in a statement. The French firm’s own CEO Michel Combes added: “A combination of Nokia and Alcatel-Lucent will offer a unique opportunity to create a European champion and global leader in ultra-broadband, IP networking and cloud applications.”
Early signs indicate that the proposed transaction will close in the opening half of 2016, subject to shareholder approval, with the new company going under the name of Nokia Corporation. Both Suri and Combes will remain in their respective roles in the new company, and the headquarters remain just outside of Helsinki.
The merger means that both companies will be in fine shape to tackle the Internet of Things and transition to the cloud, and by utilising a strong portfolio and an already sizeable presence in key markets, the two can “lead in every area in which we choose to compete.”
In 2014, the companies together boasted an R&D employee base of some 40,000 and an R&D spend of €4.7bn. Assuming that these commitments continue under the new name, Nokia Corporation will be uniquely positioned to spearhead developments in future technologies, such as 5G, IP and software-defined networking, analytics and the cloud.
