Nokia to acquire Siemens stake In ns network for $2.2 billion

Finnish mobile giant Nokia Corporation announced on Monday that it planned to buy Siemens 50 percent stake in Nokia Siemens Networks for approximately €1.7 billion, or $2.2 billion U.S.

“With its clear strategic focus and strong leadership team, Nokia Siemens Networks has structurally improved its operational and financial performance,” Stephen Elop, President and CEO of Nokia, said in a statement.

“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,” he said.

The joint venture was founded by Nokia and Siemens in 2007, a combination of Nokia’s business group and Siemens’ telecom network operations business. The company has grown to service and provide telecom infrastructure to upwards of 150 countries globally.

While Nokia’s handset business has struggled to stay above water against stiff competition from companies like Apple and Samsung, NSN has been a relatively bright point on Nokia’s balance sheet; the joint venture began posting profits again in 2012, and has done so for consecutive quarters ever since.

Nokia plans to keep the existing CEO, chairman, management and governance structure at Siemens, the company said, and NSN’s headquarters will remain in Espoo, Finland. Siemens’ restructuring plan, currently underway, will also remain unchanged.