Member Article

Mega-Merger: Nokia and Alcatel-Lucent to combine

A mega-merger has been announced today between Nokia and Alcatel-Lucent.

The combined company will be called Nokia Corporation, with headquarters in Finland and a strong presence in France.

Alcatel-Lucent has been valued at 15.6 bn euros and the combined company would have net sales of 25.9 bn euros.

The combined company will have more than 40,000 research and development employees and a spend of 4.7 bn euros in research and development.

President and chief executive officer of Nokia, Rajeev Suri, said: “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.”

Chief executive officer of Alcatel-Lucent, Michel Combes, said: “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.

“I am proud that the joined forces of Nokia and Alcatel-Lucent are ready to accelerate our strategic vision, giving us the financial strength and critical scale needed to achieve our transformation and invest in and develop the next generation of network technology.

“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.

“The proposed transaction represents a compelling offer for our shareholders both in terms of upfront premium and long term value creation potential.

“Shareholders of Alcatel-Lucent now have the opportunity to participate in the future upside of the industrial project that they have supported during the last two years, through a stronger combined business with greater global scale and a better position for the longer term.

“The new company will also provide our employees exciting opportunities to be part of a global leader.”

This was posted in Bdaily's Members' News section by Sophia Taha .