It looks like Nokia hasn’t quite gotten its fill of the smartphone business.
A year and a half after selling its smartphone business to Microsoft, the Finnish multinational telecom vendor announced that it would be acquiring fellow device maker for $16.6 billion.
Back in September 2013, Nokia sold its Devices and Services division to Microsoft for $7.2 billion including, most notably, the Lumia brand, after sales failed to live up to expectations.
The acquisition announcement comes only a day after the two companies confirmed “advanced discussions” regarding a public exchange offer by Nokia for Alcatel-Lucent.
Alcatel-Lucent was formed in 2006 when France-based Alcatel and Lucent Technologies, an AT&T spin off, merged, Android Authority reports.
Before Nokia can get back into any form of handset business, however, it needs to wait for the expiration of a non-compete agreement with Microsoft.
According to Nokia, the proposed transaction “is subject to approval by Nokia’s shareholders, completion of relevant works council consultations, receipt of regulatory approvals and other customary conditions.”
“Our innovation capability will be extraordinary, bringing together the R&D engine of Nokia with that of Alcatel-Lucent and its iconic Bell Labs,” said Rajeev Suri, President and Chief Executive Officer of Nokia in a statement. “We will continue to combine this strength with the highly efficient, lean operations needed to compete on a global scale.”