Nokia to acquire Alcatel-Lucent for $16.6 billion

By Scorpus
Apr 15, 2015
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  1. nokia alcatel-lucent acquisition

    Nokia has confirmed that they will acquire French telecommunications equipment company Alcatel-Lucent for a whopping €15.6 billion (about US$16.6 billion), in an attempt to become a major provider of telecoms equipment.

    The deal is expected to close in the first half of 2016, pending the usual approval of regulatory boards. The new company will use the Nokia brand for any Alcatel-Lucent products going forward, although the Bell Labs brand name will be retained for the company's research and development work.

    Despite their similar names, Alcatel-Lucent, a major manufacturer of telecom equipment and infrastructure, is not to be confused with Alcatel OneTouch, the smartphone manufacturer now owned by TCL Communication. Nokia isn't using the Alcatel-Lucent acquisition as a springboard back in to the mobile phone market, to the disappointment of some.

    However, the purchase of the French telecom equipment company will allow Nokia to compete with market leader Ericsson. Nokia says that 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."

    Together, the company will have more than 40,000 research and development employees working with a budget of more than €4.7 billion (US$4.98 billion).

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  2. Kibaruk

    Kibaruk TechSpot Paladin Posts: 2,408   +464

    So you are telling me Alcatel products will be Nokia branded? This will not end nicely.
  3. IMO they should change the name of the company entirely.
  4. ETF Soldier

    ETF Soldier TS Guru Posts: 372   +78

    I work for BT and we use a lot of AL equipment, knowing Nokia, hopefully the new stuff will be more reliable ;)


    I can't believe I just said that, I joined this website 5 years ago while I was still in school...
  5. tonylukac

    tonylukac TS Evangelist Posts: 1,291   +55

    I thought microsoft bought nokia, or am I in a different apple timeline?
  6. Microsoft didn't buy Nokia, they just bought one of their divisions (mobile phones and hardware). The deal also included a license to use the "Nokia" brand on smartphones few a limited period of time after the transaction, which Microsoft already stopped doing (latest Lumia phones are branded "Microsoft").
    Nokia is still its own company, based on Finland.

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