The two renowned telecommunications behemoths of the world have joined forces in order to make Nokia as the largest communications hardware provider of the world. As per the latest happenings, Nokia has taken over telecom giant Alcatel lucent for a whopping sum of $16.6 billion. With the provision of this massive acquisition, Nokia is eyeing to lock horns with German telecom monster Ericsson as the market front-runner in networking equipment internationally.
Both the companies have agreed to sum up this agreement by the mid of next year 2016. The conglomerate will then divide the businesses as the company will be re-launched under the Nokia brand name, and the R&D labs will be overseen by the Alcatel-Lucent’s Bell Labs moniker.
The deal will enable Nokia to get in the driving seat and a mainstream supplier for all kinds of interconnected devices. For example, Internet of Things, is a high-growth sector for the Finnish telecom firm and this merger with Alcatel Lucent will render it a front-line company for the upcoming wave of technological innovation.
Currently, Alcatel Lucent is a pearl in Nokia hands which employs more than 40,000 professionals working in R&D lonely and a gigantic € 4.7 billion budget. With such a huge professional workforce and popularity on the international front, Nokia-Alcatel-Lucent joint venture will be able to come up with next level of innovation in next-generation technologies such as 5G, cloud computing, IP and software-defined networking. Both companies can excel in sensors and imaging equipment businesses as well.
In addition to this, Nokia has also declared to get rid of its navigation and mapping app Here as soon as the deal with Alcatel Lucent gets underway. A number of serious buyers such as Uber and a couple of German car manufacturers are willing to grab this opportunity of getting the GPS capabilities offered by Here.
Finnish handset manufacturer Nokia was lacking its flying colors and was feeling low prior to its handset businesses being handover to Microsoft. This acquisition is a golden chance for Nokia to showcase its caliber and lost pride which was once entitled to the company.