Nokia has announced its intention to acquire telecoms equipment company Alcatel-Lucent for €15.6 billion ($16.6 billion). The deal will solidify Nokia's ambitions to become a major provider of networking equipment that competes with market leader Ericsson, following the sale of its mobile hardware division to Microsoft. Nokia and Alcatel-Lucent plan to close the deal in the first half of 2016. The new company is expected to use the Nokia brand, but will retain Alcatel-Lucent's Bell Labs name for its R&D activities.
In a statement, Alcatel-Lucent CEO Michel Combes said “This transaction comes at the right time to strengthen the European technology industry. We believe our customers will benefit from our improved innovation capability and incomparable R&D engine under the Bell Labs brand. The global scale and footprint of the new company will reinforce its presence in the United States and China.”
Once merged, the company will take on the Nokia name, while Nokia chairman Risto Siilasmaa and CEO Rajeev Suri will hold on to those roles. Three employees from Alcatel-Lucent will serve on the new company’s board, including the role of vice chairman.
No comments:
Post a Comment