Yesterday, Nokia revealed that it is in advanced talks to acquire Alcatel-Lucent. Today, the Finnish giant has confirmed that it will be buying telecoms equipment company for 15.6 billion ($16.6 billion). “The combined company will be uniquely positioned to create the foundation of seamless connectivity for people and things wherever they are,” Nokia said in a statement. Also Read - Nokia 110 4G feature phone launched with price under Rs 3,000: Check specs, price in IndiaAlso Read - Nokia G20 budget phone now available: Check specs, price in India, where to buy
“The combined company will be uniquely positioned to create the foundation of seamless connectivity for people and things wherever they are,” Nokia said in a statement. “This foundation is essential for enabling 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 4.7 billion in R&D in 2014, the combined company will be in a position to accelerate development of future technologies including 5G, IP and software-defined networking, cloud, analytics as well as sensors and imaging.” Also Read - Tech News Today: Oppo Reno 6 series launched, Poco F3 GT specs, new Nokia phone launch
This move is expected to bolster Nokia to take on the likes of Ericsson and Huawei and become a major networking equipment provider. The two companies have entered into a memorandum of understanding, and the deal is expected to be closed sometime in the first half of 2016.
Furthermore, Nokia also announced that it has initiated a strategic review of its HERE business. While this could include a potential divestment, the company has said that it may or may not result in any transaction.
This is in line with a Reuters report over the weekend, which claimed that Nokia was looking at selling its HERE business. It is also said to have approached Uber and a few other German automobile companies for a possible acquisition.