Two or more entities integrate their businesses to succeed in their businesses or to improve it. The integration process is done either by merger or by acquisition. This report evaluates the benefits of merging of Nokia with Microsoft that occurredin 2013. It is evaluated under the concepts of economies of scale, vertical integration, increased power in the market and financial benefits.The merging of Nokia with Microsoft helped both companies. This facilitated Nokia to focus on mobile networking equipment and improve its value. The company canalso offermore mapping and location services now. Microsoft gained more profits by earning on hardware too with this merger. This deal also facilitated the company to reduce the inefficiencies and improve their productivity. Both companies enhanced their market value. They also gained over their competitors by implementing various cost-reduction strategies. Hence, the acquisition of Nokia’s business services by Microsoft is a fruitful deal.