Nokia (News - Alert) 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.”