Nokia acquiring Alcatel-Lucent: here's what that means

This morning Nokia announced that they'd reached an agreement to acquire Alcatel-Lucent for 15.6 billion Euro worth of stock. Nokia will still be known as Nokia, and the company will continue to do what it had been doing even after the acquisition is complete. Nokia will continue to work with technology development and licensing, telecommunications infrastructures, and online mapping. On the other side of the equation, Alcatel-Lucent had, since 2013 when it became very apparent that their profits were slipping, been working on what they called "The Shift Plan."

Back in June of 2013, Alcatel-Lucent's Shift Plan meant moving toward the cloud, IP networking, and ultra-broadband access. During this transition, Alcatel-Lucent also sold their subsidiary Alcatel-Lucent Enterprise to the company called China Huaxin Post & Telecommunication Economy Development Center.

Nokia and Alcatel-Lucent are aiming at the big network. They're aiming at continuing to be big names in the telecommunications universe, continuing to power phones, tablets, and every smart device surrounding them.

There's also Nokia Technologies and Bell Laboratories. The latter is an 8-time winner of the Nobel Prize, and is most certainly a big boon in Nokia's purchase of Alcatel-Lucent.

Not least of all because Bell Laboratories holds over 29,000 patents.

In a deal that has Alcatel-Lucent's giving way to Nokia for a more solid singular vision, the Bell Labs division will stick around. That's how important it is.

Meanwhile Nokia Technologies will continue to license designs to manufacturers to create products like the Nokia N1 Android tablet.

Again – the deal is not yet closed, and we'll know more about what Nokia plans on doing with everything inside Alcatel-Lucent come 2016, more than likely.

VIA: New Connectivity