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Nokia plans to acquire software building company Comptel for 370 million USD

A man silhouetted against a Nokia logo. Photograph: (Reuters)

Reuters Helsinki, Finland Feb 09, 2017, 08.37 AM (IST)

The Finnish mobile phone and network equipment maker Nokia has all intentions to buy Comptel for nearly 370 million USD.

The move aims at expanding Nokia's software services business. Once one of the most prominent mobile phone producers, the company has recently struggled to meet the demand of faster 4G mobile broadband equipment.

Comptel is a company specialised in in building software-based mobile data communications solutions. 

Last year Nokia bough Franco-American group Alcatel-Lucent in a nearly 16.7 billion USD all-share deal and is cutting thousands of jobs in order to reduce annual costs by 1.3 billion USD by 2018.

Nokia said its customers were now turning to software to make their networks more intelligent

"The planned acquisition 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 a strategic partner network," Nokia said in a statement.

The cash offer, 3.25 USD per share, represents a premium of 29 percent compared with Comptel's last closing price.

Comptel, which had sales of about 100 million euros in 2016, said its board of directors, and shareholders that hold about 48 percent of the shares backed the offer.

(WION with inputs from Reuters)


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