NSN Rumoured to Be Mulling $14 Billion Bid for Juniper Networks
Published on: 20th Feb 2014
By: Ian Mansfield
Nokia Solutions and Networks (NSN) is reported to have held takeover talks with Juniper Networks with a deal possibly being announced once Nokia completes the sale of its handset division to Microsoft.
NSN's CEO, Rajiv Suri, who is also the favourite to take over the top job at Nokia later this year was reported by German news media to have held talks with his counterpart at Juniper Networks.
Germany's Manager Magazin reported that Suri traveled to the USA to hold the talks later last year.
Neither company is commenting on the report.
Nokia has been previously suggested to be considering a deal with Alcatel-Lucent, but those talks were said to have foundered over the issue of who would run the merged company.
A merger or full takeover of Juniper Networks would strengthen the NSN component of Nokia, which will already account for nearly 90% of its revenues in a post-handset company. It would also position NSN as a stronger competitor in the US markets.
Juniper Networks is currently worth around USD14 billion, and while Nokia will have boosted its cash pile by USD7.4 billion with the Microsoft deal, it would still need to secure funding for a takeover. The deal might be easier to finance as Juniper Networks has around USD3.1 billion in cash which could be used to repay the takeover debt.