The announcement made by Nokia Corporation (ADR) (NYSE:NOK) last week about acquiring Alcatel-Lucent SA (ADR) (NYSE:ALU) has got a positive response from the market. Once the deal is executed, the combined entity will be worth revenues of $ 28 billion. Top three regions that will contribute to this huge revenue are APJ or Asia Pacific, Japan and India with 18% share.
Road So Far:
The Finnish telecom gear maker Nokia announced last week that it would buy Franco-American rival for $ 16.6 billion or 15.6 billion Euros. As per the reports, it will be an all-stock deal with no cash given to Alcatel-Lucent. Once the acquisition takes place, the combined entity of Nokia and Alcatel will be worth 45 billion Euros or $49 billion. The revenue base of this entity will be nothing less than $28 billion or 26 billion Euros.
If the revenue base of Nokia in 2014 is taken into consideration, it’s easy to find out that the telecom gear maker earned 12.7 billion Euro in terms of revenues. Out of the total revenues, 3.4 billion Euro or 26% share came from APJ and India. At the same time, Alcatel-Lucent earned a total of 13.2 billion Euro, 1.3 billion Euro or 10% of which came from APJ and India regions. The data has been made public on the basis of reports of US Securities and Exchange Commission.
If the deal is executed successfully, the combined revenue of both the firms will hit 26 billion Euro mark with APJ and India regions contributing 4.7 billion euro or 18% of the total revenue. While talking to reporters, Rajeev Suri, CEO and President, Nokia looked determined. He stated that company’s increased reach in U.S., Europe, China, and Asia-Pacific would empower it to serve everyone in the best way possible. Nokia Corporation will work as the new arm of Nokia Group with Suri to serve as Chief Executive Officer and Risto Siilasmaa as Chairman.