Nokia is acquiring Finland-based telecommunications software company Comptel in a cash deal worth €347 million ($371 million). The offer is worth Euro 3.04 in cash, a 28.8 percent premium on Comptel's share price the day prior to the announcement and 51.2 percent above the average price in the past 12 months. Acquiring Comptel would help Nokia bolster its software portfolio.
Comptel reported 98 million euros in revenues in 2015, with an 8.7% operating margin.
"They are turning to software to provide more intelligence, automate more of their operations, and realise the efficiency gains that virtualisation promises".
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Perhaps more importantly, though, Nokia said the combination of its own Service Assurance portfolio with Comptel's Service Orchestration assets would allow Nokia to provide its customers with end-to-end orchestration of network function virtualization (NFV) and software defined networking (SDN) deployments.
Nokia has announced a tender offer of €3.04 per share in cash to buy Comptel as it tries to push its software strategy forward. We want to help them by offering one of the industry's broadest and most advanced portfolios. It intends to combine its Service Assurance portfolio with the company's Service Orchestration Portfolio, which it believes will "enable a dynamic closed loop between service assurance and fulfillment that simplifies management of complex heterogenous networks". It employs about 800 people in more than 30 countries. It processes 20% of mobile data every day globally, orchestrates communications and digital services for more than two billion users daily. The planned acquisition of Comptel would bolster go-to-market efforts with a software-dedicated sales force and strong partner network, said Nokia.
Being neighbors from Finland, Comptel and Nokia are also considering this as a regional consolidation.