Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) announced the completion of its transaction to acquire the remaining 50 percent stake in Nokia Siemens Network (NSN) it does not yet own from its joint venture with Siemens AG (NYSE:SI) (FRA:SIE).
Nokia Siemens Network to become Nokia Solutions and Networks (NSN)
The Finnish smartphone manufacturer revealed its agreement to acquire NSN for $1.7 billion last month. According to Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), it will rebrand the Nokia Siemens Network by removing the Siemens name. Its new name will be Nokia Solutions and Networks and will continue to be referred to as NSN. The acronym NSN will be used in its financial reporting.
Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) said it will continue to consolidate Nokia Solutions and Networks (NSN) as its wholly own subsidiary. NSN CEO, Rajeev Suri and Executive Chairman, Jesper Ovesen will remain in their positions. The Finnish smartphone manufacturer said the directors of the board NSN that were appointed by Siemens AG (NYSE:SI) resigned, and the board had been restructured under the new ownership structure.
Last month, analysts at Nomura Equity Research opined that Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)'s acquisition of NSN will boost its stock value, but they remain concerned about the future of the company’s handset unit. They estimated that NSN will enhance the value of Nokia’s stock by €0.4 per share. The analysts also speculated that the Finnish smartphone manufacturer might be planning to shift its focus from devices to networks and location-based services.
Nokia missed expectations
During the second quarter, Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V)'s financial results missed the expectations of Wall Street analysts. The company posted €0.6 losses per share on €5.7 billion revenue. On the positive side, the company reported that the sales of its Windows Lumia Phones increased by 32 percent to 7.4 million units quarter-over-quarter.
Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) recently launched its latest Windows Lumia Phone, the Lumia 625 with a 4.7 inch display at an affordable price. The smartphone is integrated with a 1.2GHz, dual-core Snapdragon S4 processor, a 5-megapixel camera, 512MB of RAM and 8GB of storage (expandable via microSD memory card) and supports LTE and HSPA.
The Finnish smartphone manufacturer also launched the Lumia 1020 with 41-megapixel camera, which is considered by several analysts as competitive, and a well-featured handset.