Nokia to sell businesses to Lumine Group
Nokia has reached an agreement under which Lumine Group Inc. will buy the Finnish company's Device Management (DM) and Service Management Platform (SMP) businesses.
The deal marks further progress in Nokia’s strategy to actively manage its Cloud and Network Services (CNS) business group portfolio in order to invest in other strategic areas. The deal also enhances Lumine Group’s software portfolio, and enables Nokia customers to benefit from Lumine’s telecom industry expertise, financial resources, and strategic intent to invest in a long-term product roadmap.
Some 500 Nokia Device Management and Service Management Platform employees are expected to transfer to Lumine Group as part of the deal.
The deal is valued at EUR 185 million, which includes a contingent consideration of up to EUR 35 million based on the performance of the business during the first year following close. The deal is expected to close in the first quarter of 2024.
CNS has executed a clear strategy over the past two years to grow faster than the market by reorienting investment toward strategic areas of 5G Core, secure autonomous operations, private wireless and edge, network as code, and SaaS. The deal follows Nokia earlier announcements to divest its VitalQIP products to Cygna Labs Corp and to make Red Hat the primary infrastructure platform for Nokia Core Network applications.
Lumine Group acquires, manages, and builds industry-specific software, focused in the telecom and media space.
“Nokia is pleased to enter this agreement with Lumine as another sign of progress in our strategy to focus investment in those areas most important to our business. Lumine Group has the telecom industry expertise as well as the strategic focus and resourcing to drive the Device Management and Service Management Platform businesses forward to a stronger future,” says Raghav Sahgal, President of Cloud and Network Services, at Nokia in a press release.
