Finland’s Nokia is considering buying U.S.-based network gear maker Juniper Networks to merge it with its unit Nokia Siemens Networks (NSN).
The article first appeared in German online publication Manager Magazin Online.
Reuters reported that NSN Chief Executive Rajeev Suri traveled 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 U.S. business, the online magazine said on Thursday.
Juniper has a stock market value of $13.7 billion, making it a major takeover target for Nokia, but Manager Magazin said Nokia could use Juniper’s $3.1 billion cash to help finance the purchase.
A source familiar with NSN’s strategy said no such deal was imminent, but analysts have said NSN and other smaller network equipment players are likely to seek M&A deals ahead as bigger players can afford more R&D spending.
There is no official confirmation.
Nokia is in the process of selling its handset business to Microsoft for $7.3 billion.
NSN is already cooperating with Juniper.