Shares of Finnish telecom equipment maker Nokia (NOK) are advancing after the company announced it is expanding its licensing pact with Samsung (SSNLF).
WHAT'S NEW: Nokia announced that it expanded its patent cross license agreement with Samsung to cover certain additional patent portfolios of both companies. The agreement between the two companies expands access for each company to patented technologies of the other and reinforces Nokia's leadership in technologies for the programmable world. Nokia sees the agreement positively impacting Nokia Technologies revenues starting in the third quarter. With this expanded agreement, Nokia Technologies' annualized net sales related to patent and brand licensing is expected to grow to a run rate of approximately EUR 950M by the end of 2016. "With intellectual property portfolios from Nokia Technologies, Nokia Networks and Alcatel-Lucent, Nokia has a wealth of technologies relevant to mobile devices and beyond," said Ramzi Haidamus, president of Nokia Technologies. "We welcome this expanded agreement with Samsung which recognizes the strength of our assets, and we continue to pursue new licensing opportunities across a number of diverse industries."
PRICE ACTION: Shares of Nokia are up 5.8% in afternoon trading to $5.91 per share.
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