Espoo, Finland, Nov. 02, 2016 (GLOBE NEWSWIRE) --
- Nokia can now start eliminating complexity and costs of two separate corporate structures
- Nokia is already leveraging extended scale and scope to new customers in new sectors to meet connectivity demands
- Nokia's broad product portfolio, spanning fixed and mobile technologies, puts it in driver's seat in an ever-more connected world
Nokia finalized its acquisition of Alcatel-Lucent today, wrapping up a rapid purchase and integration of the company and giving it added momentum to capture more business inside and outside the telecoms sector as demand for data surges.
Only 19 months after announcing plans to purchase Alcatel-Lucent in April 2015, Nokia's fast progress in integrating and operating as a combined company has put it in good stead to meet the opportunities of an increasingly connected world.
The closing of the deal today, marked by the purchase of all outstanding Alcatel-Lucent shares, means Nokia will now start eliminating the complexity and costs of running two separate public companies. It caps a radical three-year transformation that started with the purchase of Siemens' share in Nokia Siemens Networks in 2013 and was followed by the divestments of the Devices & Services and mapping businesses in the next two years.
"While we have been operating as a combined company already since January 2016, we should take a moment to recognize the significance of today's news. This acquisition was smoother than many observers thought possible, and I would like to thank all our employees and partners who made it happen," said Nokia President and CEO, Rajeev Suri.
This speed was evident only 9 months after the deal was announced, with Nokia and Alcatel-Lucent working as a combined company and, shortly after that, Nokia offering customers its improved product portfolio in a fraction of the time taken in previous integrations. The company has accelerated synergy plans for the deal, and expects EUR 1.2 billion in annual cost savings to be achieved in full-year 2018.
Nokia has been bolstered by Alcatel-Lucent's fixed, IP, optical and applications and analytics technologies, making it the only global player to offer a truly end-to-end portfolio to meet rising data-driven demands. With its recent launch of 4.5G Pro and the future deployment of 4.9G technology, Nokia is giving operators, enterprises and public institutions the enhanced capacity and network latency essential for the transition to 5G.
The acquisitions in 2016 of Withings and Gainspeed, plus a brand-licensing deal with HMD global and expanded intellectual property cross-licensing agreement with Samsung, also show Nokia's intent to branch into new markets in a way that makes sense not only as a stand-alone activity, but with the aim to create more demand for its Networks business.
"During the last three years Nokia has reinvented itself, emerging as a leader in the technologies connecting people and things with an unparalleled portfolio that better serves our traditional customers and, critically, new customers in the enterprise, Internet, utilities and transportation sectors. We are focused on playing a central role in a world where everyone and everything will be connected - the Programmable World," Suri added.
Nokia will share more on its future plans at its Capital Markets Day in Barcelona on November 15, 2016.
Nokia is a global leader in the technologies that connect people and things. Powered by the innovation of Nokia Bell Labs and Nokia Technologies, the company is at the forefront of creating and licensing the technologies that are increasingly at the heart of our connected lives.
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This press release contains forward-looking statements that reflect Nokia's current expectations and views of future events and developments. Some of these forward-looking statements can be identified by terms and phrases such as "intend", "expect", "will" and similar expressions. These forward-looking statements include statements relating to: Nokia's ability to eliminate complexities and costs following closing; Nokia's ability to achieve expected cost synergies; and Nokia's intentions regarding future business opportunities and its ability to capture such opportunities. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such statements. These forward-looking statements are based on our beliefs, assumptions and expectations of future performance, taking into account the information currently available to us. These statements are only predictions based upon our current expectations and views of future events and developments. Risks and uncertainties include: the ability of Nokia to continue to integrate Alcatel-Lucent into Nokia's operations; the performance of the global economy; and the capacity for growth in internet and technology usage and Nokia's ability to capture such growth, as well as other risk factors listed from time to time in Nokia's and Alcatel-Lucent's filings with (or documents furnished to) the U.S. Securities and Exchange Commission ("SEC").
The forward-looking statements should be read in conjunction with the other cautionary statements that are included elsewhere, including Nokia's and Alcatel-Lucent's most recent annual reports on Form 20-F, reports furnished on Form 6-K, the tender offer notification furnished on Form CB, and any other documents that Nokia or Alcatel-Lucent have filed with (or furnished to) the SEC. Any forward-looking statements made in this press release are qualified in their entirety by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us or our business or operations. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: Nokia Oyj