Nokia Corporation and Siemens AG today announced that both the entities have signed a definitive agreement according to which Nokia will acquire entire 50 percent stake of Siemens in Nokia Siemens Networks. The acquisition has been approved by the Board of Directors of both the companies and now the buyout is subject to the customary regulatory approval process.
On announcing the acquisition of Nokia Siemens Networks, Stephen Elop, President and CEO of Nokia, said;
“With its clear strategic focus and strong leadership team, Nokia Siemens Networks has structurally improved its operational and financial performance. Furthermore, Nokia Siemens Networks has established a clear leadership position in LTE, which provides an attractive growth opportunity. Nokia is pleased with these developments and looks forward to continue supporting these efforts to create more shareholder value for the Nokia group.”
The Siemens stake in the Nokia Siemens Networks joint venture is valued at €1.7 billion, out of which Nokia will pay €1.2 billion in cash and the remaining amount of €500 million will be paid in the form of a secured loan to Siemens AG. The transaction is expected to close during the third quarter of 2013. Upon the closing of transaction, Nokia Corporation will be the sole owner of Nokia Siemens Network.
On the acquisition deal, Joe Kaeser, Siemens CFO said;
“With this transaction, we continue our efforts to strengthen our focus on Siemens’ Core areas of Energy management, Industry and Infrastructure as well as Healthcare. The full acquisition of Nokia Siemens Networks by Nokia offers an attractive opportunity to actively shape the telecom equipment market for the future and create sustainable value.”
On April 1, 2007, Nokia Siemens Networks was established as a joint venture between Nokia’s Networks Business Group and Siemens’ carrier-related operations for fixed and mobile networks. Nokia Siemens Networks has already deployed networks in over 150 countries worldwide.