Media reports in Israel valued the deal at $100m, but this was not confirmed by the companies. Atrica, which is based in Israel and the US, focuses on Ethernet technology for city networks.

Nokia Siemens Networks is continuing its investments in the development of solutions and products for data-optimized networks, according to a Nokia statement.

The company also said the market for carrier Ethernet products was one of the fastest-growing among telecommunications and pointed to analyst forecasts of 15% annual growth for the segment.

The deal is expected to close this year.