Nokia mulls buying Juniper for expansion
February 21, 2014 - 5:51:56 am
FRANKFURT/HELSINKI: Finland’s Nokia is considering buying US-based Juniper Networks to merge into its telecommunications network gear business, German’s Manager Magazin Online reported, citing unidentified sources.
Nokia Solutions and Networks Chief Executive Rajeev Suri travelled to the United States late last year to discuss with Juniper’s management closer cooperation and a possible merger that would strengthen NSN’s weak US business, the online magazine said yesterday.
Juniper has a stock market value of $13.7bn, making it a major takeover target for Nokia, but the magazine said Nokia could use Juniper’s $3.1bn cash to help finance the purchase.
NSN will be Nokia’s primary operation after the sale of its Devices and Services business to Microsoft in a $7.4bn deal, which is expected to close by the end of next month.
Analysts have said, however, that NSN and other smaller network equipment players are likely to pursue M&A deals, because bigger players can afford to spend more on research and development. Representatives of Nokia, NSN and Juniper declined to comment on the latest report.
NSN and Juniper are already in a partnership to jointly develop and sell network equipment to carriers.
After years of concentrating on cutting costs, NSN has said it is now focusing on expanding the business and competing more aggressively against industry leader Ericsson and China’s Huawei.Reuters