Nokia has agreed terms to acquire networking rival Alcatel-Lucent in an all stock deal valuing the French company at €15.6 billion. The deal is expected to pass regulatory approval in early 2016.
Between them, Nokia and Alcatel-Lucent have more than 40,000 employees working in research and development in areas such as 5G research, IP and software-defined networking, cloud, analytics as well as sensors and imaging.
Rajeev Suri, president and CEO of Nokia (pictured), 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.”
Michel Combes, CEO of Alcatel-Lucent, 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.”
The planned combined company would be headquartered in Finland, with strategic business locations and R&D centres in France, Ireland, Germany, the United States and China. The business is expected to operate under the Nokia brand and the Bell Labs brand to host its networks-focused innovation activities.
Upon closing of the transaction, Risto Siilasmaa is planned to serve as chairman with Rajeev Suri continuing as CEO. Nokia said it also intends to establish a €100 million investment fund to invest in start-ups in France with a focus on the Internet of Things and the Industrial Internet.
A spokesperson for Bell Labs this morning was unable to comment on how its Blanchardstown operation would be affected.
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