Nokia bought Alcatel-Lucent for $16.6 Billion

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The Finland based technology company Nokia has announced that it agreed to buy the French telecommunications equipment company Alcatel-Lucent in an all-stock deal valued at 15.6 billion euros ($16.6 billion).
This deal will make Nokia as the world’s largest supplier of equipment that powers mobile-phone networks.

The combined company will be called Nokia Corporation, with headquarters in Finland and a strong presence in France. Risto Siilasmaa is planned to serve as Chairman, and Rajeev Suri as Chief Executive Officer. Alcatel shareholders will own 33.5 percent of the company and Nokia shareholders 66.5 percent.

This deal is the biggest in the industry since 1999, when Lucent Technologies bought Ascend Communications for about $21 billion.

Nokia and Alcatel have more than 110,000 workers combined

The takeover would also let Nokia add products used to transmit landline and Internet traffic, giving it a more complete offering to sell to carriers as the amount of data traveling on networks increases with the popularity of Netflix and other video and music services.

Read more details about this deal at http://company.nokia.com/en/news/press-releases/2015/04/15/nokia-and-alcatel-lucent-to-combine-to-create-an-innovation-leader-in-next-generation-technology-and-services-for-an-ip-connected-world

Alcatel lost billions of dollars in the years following its 2006 merger with Lucent as it struggled to revive sales.

Founded as a wood-pulp mill in 1865, Nokia’s transformations have included switches from rubber boots and toilet paper to cables, televisions, computers and mobile phones. It was the world’s largest handset maker -- with a market value reaching 300 billion euros -- before Apple and Samsung claimed its leadership.

Nokia shares have more than doubled since the company agreed to sell its mobile-phone business to Microsoft in 2013 for about $7.5 billion. That deal left Nokia with net cash of about 5 billion euros at the end of last year.
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