Deal Updates: Nokia Corporation (ADR) (NYSE:NOK), VMware, Inc. (NYSE:VMW)
Software giant Microsoft is all set to buy out Finnish handset maker Nokia Corporation (ADR)(NYSE:NOK)’s mobile division for a whopping 5.44 billion euros ($7.2 billion). The CEO of Nokia, Stephen Elop, would be joining Microsoft after the closure of the transaction.
Once the undisputed leader, Nokia, has been facing challenging times from other smartphone makers such as Samsung and Apple. Analysts opine that Elop’s bet in 2011 to partner with Microsoft’s Windows Phone software is yet to yield results.
The deal is likely to be closed by quarter one of the next year subjected to approval of Nokia Shareholders as well as regulatory approvals. Steve Ballmer, Microsoft’s outgoing CEO has opined that the step is a bold one and would benefit employees, shareholders as well as consumers of both the companies. He further added that bringing together good teams from both companies would result in increasing profits of Microsoft.
Nokia has confirmed that its senior executives besides Elop such as Jo Harlow, Juha Putkiranta, Timo Toikkanen, and Chris Weber, would also move to Microsoft after the conclusion of the deal.
Elop is one of the favourites to take over once Microsoft chief when Ballmer steps down.
Microsoft would be paying EUR 3.79 billion for purchasing each part of Nokia’s Devices & Services business as well as EUR 1.65 billion to license Nokia’s patents.
Ballmer was also of the view that besides innovation and strength of phones, Nokia has proven capabilities in areas such as engineering, supply chain as well as marketing and distribution.
Leading provider of networking solutions as well as communications devices, Juniper Networks has announced extending partnership with VMware, Inc.(NYSE:VMW) for offering solutions to connect physical and virtual networks within a virtual data center. VMware is the industry-leading virtualization software company.
The partnership would involve Juniper’s VMware NSX L2 Gateway integration and VXLAN routing products enabling connection within a data center as well as between data centers for speeding up the transition to software-defined networking.
The augmenting complexity in cloud infrastructure is leading to more demand for SDN solutions. The solutions lead to more flexibility in infrastructure reducing costs for companies.
Juniper’s quarter two revenues for the year were $1.15 billion and the firm is witnessing strong revenue growth in some of its key business markets.
Tags: Inc. (NYSE:VMW), Nokia Corporation (ADR) (NYSE:NOK), VMware