Nokia cellular phone

In a climate of changing distribution channels and market demographics, 2 major European cellular phone manufacturers are joining forces. Nokia Corp. is acquiring Technophone Ltd. for a total purchase consideration of $66 million. The all-cash offer has received 100% acceptance from Technophone shareholders, and completion of the transaction is expected to take place in March.

This alliance teams the first and second largest cellular phone manufacturers in Europe. Technophone, a privately owned company which was established in 1984, employs 750 people in production facilities in England and Hong Kong. The Technophone Group supplies telephones for almost all the world standards and currently sells mobile and portable phones in more than 30 countries. Nokia Mobile Phones is based in Finland and employs 3,500 people in manufacturing facilities in Finland, Germany and South Korea.

This transaction brings together the 2 leading manufacturers of cellular mobile phones in Europe. "In view of the changing mobile phone market, the increased volume resulting from the acquisition will strengthen the competitive position of Nokia and Technophone in the global marketplace," said Jorma Ollila, president of Nokia Mobile Phones.