Nokia is set to acquire Finnish software company Comptel for €347m, as part of its plan to strengthen its software business.
Through the acquisition, Comptel will strengthening Nokia’s software portfolio and join Nokia’s Application and Analytics business group.
It is part of Nokia’s strategy to build a standalone software business at scale by expanding and strengthening its software portfolio and go-to-market capabilities with additional sales capacity and strategic partner network.
Comptel’s expertise can support Nokia by adding critical solutions for catalogue-driven service orchestration and fulfilment, intelligent data processing, customer engagement, and agile service monetization.
The two companies have entered into a transaction agreement under which Nokia’s subsidiary Nokia Solutions and Networks will buy all of the outstanding shares of Comptel, at a tender offer of €3.04 per share in cash.
According to the Finnish handset-maker, by combining its Service Assurance portfolio and Comptel’s Service Orchestration portfolio can help in creating a closed loop between service assurance and fulfillment that simplifies management of complex heterogenous networks.
By integrating Comptel with Nokia’s Cloudband and Nauge portfolios, Nokia says that it can provide its customers with complete, end-to-end orchestration of complex network function virtualisation (NFV) and software defining networking (SDN) deployments.
Nokia’s Applications & Analytics business grouppresident Bhaskar Gorti said: “Nokia is committed to building its software business and is backing its commitment with strategic investments. The timing of the Comptel purchase is important as our customers are changing the way they build and operate their networks.
“They are turning to software to provide more intelligence, automate more of their operations, and realize the efficiency gains that virtualisation promises.
“We want to help them by offering one of the industry’s broadest and most advanced portfolios. Comptel helps us do that.”
Comptel president and CEO Juhani Hintikka said: “Together with Nokia we would create an agile and innovative player which can challenge current market leaders head-to-head.
“Throughout the past five years we have been working hard to sharpen our thought leadership and competitiveness by rebuilding the brand, product portfolio and values driven culture.
“I am 100% confident that we are now capable, ready and passionate to take the next step in scaling and expanding our business beyond the ordinary with a new set of resources that Nokia would provide us.”
The acquisition, subject to approval from regulatory authorities, is expected to close in the second quarter of this year.