CR Team | Monday, 15 June 2015, 12:28 IST
FREMONT, CA: After years of rumbling finally the day has arrived. Nokia buys Alcatel-Lucent for 15.6Bn Euros which is approximately $16.5Bn. According to the deal, the technology expertise from both the companies would now work in synergy to spearhead technology innovation and lead the market. The deal is expected to close in the first half of 2016.
Nokia is rich with cash as it recently closed its deal with Microsoft for its mobile manufacturing business division. The company which struggled to keep up with the competition put up by Samsung and Apple was too much for it to fathom. Now with a new vision, the company focuses on innovation in IP networking, mobile broadband, cloud applications and services, and IoT. Having Alcatel-Lucent in its arsenal positions it to lead the technology innovations.
Highlights of the Merger
The combined company, now called Nokia Corporation will be headquartered in Finland while having a strong presence in France. The current CEO of Nokia, Rajeev Suri, will continue to hold his position.
Mentioning about this massive deal, Suri said, “I firmly believe that this is the right deal, with the right logic, at the right time.”
“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,” Suri adds.
Innovation Centers
Nokia Corporation will have both Alcatel-Lucent’s iconic Bell Labs and Nokia’s FutureWorks under its aegis. Nokia Technologies will continue its focus on licensing and the incubation of new technologies. Developments will be focused on technologies including 5G, IP and software-defined networking, cloud, analytics, sensors, and imaging.
Business Direction
Users across the globe are accessing rich multimedia on their mobile devices. Cloud and open source technologies are making unachievable achievable. Tapping this massive opportunity, the combined company will enable telecom operators, Internet Service Providers (ISPs), and enterprises to overcome their challenges and drive business results.
“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,” said Michel Combes, CEO, Alcatel-Lucent.
