Nokia Buys Alcatel-Lucent

Posted: Apr 15 2015, 3:12am CDT | by , in News | Latest Business News


Nokia buys Alcatel-Lucent
Photo Credit: Getty Images

Nokia and Alcatel-Lucent announced today to acquire Alcatel-Lucent for $16.55 Billion.

Nokia and Alcatel-Lucent announced today their to combine to create an innovation leader in next generation technology and services for an IP connected world. The two companies have entered into a memorandum of understanding under which Nokia will make an offer for all of the equity securities issued by Alcatel-Lucent, through a public exchange offer in France and in the United States, on the basis of 0.55 of a new Nokia share for every Alcatel-Lucent share. The all-share transaction values Alcatel-Lucent at EUR 15.6 billion ($16.55) on a fully diluted basis.

Each company's Board of Directors has approved the terms of the proposed transaction, which is expected to close in the first half of 2016. The proposed transaction is subject to approval by Nokia's shareholders, completion of relevant works council consultations, receipt of regulatory approvals and other customary conditions.

The combined company is supposed to make Nokia ready for the next wave of technological change, including the Internet of Things and transition to the cloud. 

With more than 40,000 R&D employees and spend of EUR 4.7 billion in R&D in 2014, the combined company will have a lot of man power to work on future technologies including 5G, IP and software-defined networking, cloud, analytics as well as sensors and imaging. 

Rajeev Suri will stay President and CEO after the acquisition. He said about the deal: "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. 

Our innovation capability will be extraordinary, bringing together the R&D engine of Nokia with that of Alcatel-Lucent and its iconic Bell Labs. We will continue to combine this strength with the highly efficient, lean operations needed to compete on a global scale.

We have hugely complementary technologies and the comprehensive portfolio necessary to enable the internet of things and transition to the cloud.  We will have a strong presence in every part of the world, including leading positions in the United States and China.

Together, we expect to have the scale to lead in every area in which we choose to compete, drive profitable growth, meet the needs of global customers, develop new technologies, build on our successful intellectual property licensing, and create value for our shareholders.

For all these reasons, I firmly believe that this is the right deal, with the right logic, at the right time."

Nokia also announced today that the company started a review of strategic options, including a potential divestment, for its HERE maps business. 

You May Like


The Author

<a href="/latest_stories/all/all/2" rel="author">Luigi Lugmayr</a>
Luigi Lugmayr () is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at




Leave a Comment

Share this Story

Follow Us
Follow I4U News on Twitter
Follow I4U News on Facebook

You Also Like


Read the Latest from I4U News