Helsinki, Finland — Nokia announced it will combine with Alcatel-Lucent to better strengthen its resources for the “IP-connected world.”
Nokia will make an offer for all of the equity securities issued by Alcatel-Lucent, through a public exchange offer in France and in the U.S., on the basis of 0.55 of a new Nokia share for every Alcatel-Lucent share.
The combined company will be called Nokia Corporation and have headquarters in Finland with business locations and major R&D centers in France, Germany, the U.S. and China. It is expected to operate under the Nokia brand and intends to retain the Bell Labs brand to host its networks-focused innovation activities, a statement said.
Current Nokia chairman Risto Siilasmaa and CEO Rajeev Suri will continue in those roles for the new entity.
The boards of both Nokia and Alcatel-Lucent have approved the terms, and the deal is expected to close in the first half of 2016. It is still subject to approval by Nokia's shareholders, completion of relevant works council consultations, receipt of regulatory approvals and other customary conditions, according to the statement.
“The combined company will have unparalleled innovation capabilities, with Alcatel-Lucent’s Bell Labs and Nokia’s FutureWorks, as well as Nokia Technologies, which will stay as a separate entity with a clear focus on licensing and the incubation of new technologies,” the companies said.
In a statement, Alcatel-Lucent CEO Michel Combes said the combination will yield “a global leader in ultra-broadband, IP networking and Cloud applications,” while its new global scale and footprint will bolster its position in the U.S. and China.
In a prelude to today’s merger announcement, Nokia yesterday said it hired former Cisco executive Guido Jouret to serve as chief technology officer of Nokia Technologies.