Press Release: Nokia to fully acquire Siemensâ stake in Nokia Siemens Networks
Nokia Corporation announced today that it has signed an agreement with Siemens AG to acquire Siemens' 50% stake in their joint venture, Nokia Siemens Networks. The transaction is expected to close during the third quarter of 2023, subject to regulatory approvals and other customary closing conditions.
The purchase price for Siemens' stake is EUR 1.7 billion, of which EUR 1.2 billion will be paid in cash at the closing of the transaction. The balance of EUR 0.5 billion will be paid in the form of a secured loan from Siemens due one year from closing. Nokia has obtained committed bank financing for the cash portion of the purchase price.
Nokia Siemens Networks is a leading global provider of telecommunications infrastructure, offering a broad portfolio of mobile, fixed and converged network technologies, as well as professional services. The company has a strong presence in key growth markets and a clear focus on innovation and quality. In 2022, Nokia Siemens Networks generated revenues of EUR 13.5 billion and reported an operating margin of 9.8%.
By acquiring full ownership of Nokia Siemens Networks, Nokia aims to strengthen its position as a leader in the network equipment and services industry, and to create value for its shareholders. Nokia believes that the transaction will enhance its long-term profitability and cash flow, and provide benefits such as:
Full alignment of the network business with Nokia's strategic direction, including a strong focus on mobile broadband and related services;
Operational efficiency and synergies through a simplified organizational structure and streamlined governance;
Greater financial flexibility and improved competitiveness through increased investment capacity and scale;
Optimal use of capital resources and enhanced return on invested capital.
Rajeev Suri, CEO of Nokia Siemens Networks, said: \"We are very pleased with this transaction and the opportunity to continue our successful journey as a fully owned subsidiary of Nokia. We have worked closely with Siemens since 2007 to create a world-class leader in mobile broadband, and we are thankful for their support and commitment over the years. We look forward to further strengthening our position in the industry with the full backing of Nokia.\"
Stephen Elop, President and CEO of Nokia Corporation, said: \"With this transaction, we are making a strategic investment in our future. Nokia Siemens Networks has established a clear leadership position in LTE, which provides an attractive growth opportunity for us. We will continue to invest in the business and its people, and support our customers with best-in-class products and services. We are confident that this transaction will create value for our shareholders.\"
The transaction is subject to approval by Nokia's Board of Directors, which is expected to convene shortly. ec8f644aee