Nokia Partnered Alcatel-Lucent for $16.6 billion

    After a long discussion, both tech companies Nokia and Alcatel-Lucent have collaborated with a $16.6 billion transaction that will combine two of the smallest network equipment firms in Europe.

    Nokia Partnered Alcatel-Lucent for $16.6 billion

    As per the deal, the Finnish company Nokia will give 0.55 of a Nokia share. That works out to a value of $4.32 for each Alcatel-Lucent share. During the first half of the 2016, Alcatel-Lucent stockholders will own 35% of the combined company.

    Recommended: HTC One M9+ First Look: A Beautiful Beast

    Finland based company, Nokia said that it will look to sell some assets including the highly regarded HERE maps business.

    Nokia Networks acquires a key product-focused portfolio from Alcatel-Lucent, including IP transport network, optical technology, specific network analytics and wireless technology assets.

    Both Nokia-Alcatel-Lucent combinely compete with Ericsson, which has the largest market share in the wireless network equipment industry at 40%.

    Nokia Partnered Alcatel-Lucent for $16.6 billion

    Nokia now jumps into the number two slot with 35% of the pie along with Huawei, which owns 20% of the market.

    The deal is expected to be finalised in the first half of 2016, but it will take much longer for the portfolio rationalisation to have an effect on the market.

    Recommended: Top 10 HTC Smartphones Powered By Qualcomm Snapdragon CPU to Buy in India

    In the meantime, this will create a slowdown in infrastructure deals and could result in an advantage for the competitors.

    X

    Stay updated with latest technology news & gadget reviews - Gizbot

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Gizbot sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Gizbot website. However, you can change your cookie settings at any time. Learn more