Nokia Acquires Alcatel-Lucent for EUR 15.6 billion

Nokia-Acquires-Alcatel-Lucent-for-EUR-15.6-billionNokia has acquired Alcatel-Lucent for EUR 15.6 billion.

The combined entity will focus on 5G, Cloud, IP, SDN, Analytics and Sensor & Imaging.

The combined entity has around 40,000 R&D employees and has invested EUR 4.7 billion in R&D for 2014.

The new entity would be called Nokia Corporation and would be led by Rajeev Suri as its CEO and Risto Siilasmaa as chairman and would be headquartered in Finland.

The transaction would be closed by Ist half of 2016 and subject to regulatory approvals.

The net sales of the combined entity in 2014 is EUR 25.9 billion and had a net profit of EUR 2.3 billion. The company is expecting a CAGR of 3.5 percent for the period 2014-2019.

Post closure of the transaction, Nokia would establish an investment fund of EUR 100 million for France based start ups focused on IoT (Internet of Things). The company expects to hire several hundred people for its R&D units focusing on 5G.

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