Menu

IoT FEATURE NEWS

Nokia Announces Plans to Buy Comptel

By Ken Briodagh February 13, 2017

Nokia Corporation recently announced its intention to acquire Comptel Corporation with the goal of advancing its software strategy and provide service providers with a comprehensive solution to design, deliver, orchestrate and assure communications and digital services across physical, virtual and hybrid networks, according to the announcement.

Nokia and Comptel on February 8 entered into a Transaction Agreement, under which Nokia undertakes to make a voluntary public cash tender offer to purchase all of the issued and outstanding shares and option rights in Comptel that are not owned by Comptel or any of its subsidiaries. In non-legalese, Nokia wants to buy everything that isn’t directly owned by Comptel itself. The price offered for each share will be $3.22 in cash, which values Comptel at about $368 million.

Nokia said that 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. Comptel would bolster Nokia’s software portfolio by adding solutions for catalogue-driven service orchestration and fulfillment, intelligent data processing, customer engagement, and agile service monetization.

“Nokia is committed to building its software business and is backing its commitment with strategic investments,” said Bhaskar Gorti, president, Applications & Analytics business group, Nokia. “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 virtualization promises. We want to help them by offering one of the industry's broadest and most advanced portfolios. Comptel helps us do that.”

The Board of Directors of Comptel has unanimously decided to recommend that the shareholders and holders of option rights accept Nokia’s offer. The offer is now subject to approvals by the relevant regulatory authorities and on Nokia gaining control of more than 90 percent of the outstanding Comptel shares on a fully diluted basis.

“After careful examination of the Tender Offer, the Board of Directors of Comptel has unanimously decided to recommend the shareholders to accept it,” said Pertti Ervi, Chairman of the Board, Comptel. “For a shareholder, the tender price offers a possibility to sell the shares risk free at a price reflecting the potential future strategic value of the company. The Board of Directors of Comptel believes that Nokia's global reach, strength of brand and cross-selling opportunities would benefit the activities of Comptel. Combining Comptel's business with Nokia would offer the customers of both Comptel and Nokia a wider and more innovative software portfolio which would improve competitiveness of the combined business unit, especially in the eyes of larger customers.” 




Edited by Alicia Young

Editorial Director

SHARE THIS ARTICLE
Related Articles

The IoT: Redefining Local Food Retail Tech and Green Initiatives

By: Lindsey Patterson    3/22/2017

As the IoT has become more common place, it has also become more affordable and less intimidating.

Read More

Huawei Announces Collaboration with Honeywell on Smart Buildings

By: Ken Briodagh    3/22/2017

At CeBIT 2017, Huawei announced that it is collaborating with Honeywell to bring to market smart building offerings that take advantage of the latest …

Read More

Connected Health Moves from Development to Use

By: Ken Briodagh    3/22/2017

Le Lab e-Sante has announced a large field-based study called UPDOCS to determine how ready medical professionals are to use connected health devices …

Read More

The Short List of Who Protects Companies Against DDoS Attacks

By: Special Guest    3/22/2017

So why is it that so many companies seem to think somebody else is responsible for protecting them against distributed denial of service (DDoS) attack…

Read More

IBM Watson Enables IoT Strategy Across Industry

By: Ken Briodagh    3/22/2017

IBM's famous Watson supercomputer is the dominant force in machine learning across the entire IT world, and the IoT. The company is also establishing …

Read More