Nokia buys Comptel to add network software

Nokia agreed to buy Comptel Oyj for 347 million euros (USD370 million) to add technology that helps phone carriers manage their networks, part of a push into software and services as network-gear sales sputter.

Comptel shareholders will get 3.04 euros a share in cash, Espoo, Finland-based Nokia said in a statement Thursday. That’s 29 percent more than Comptel’s closing price on the Helsinki exchange Wednesday.

Nokia and rivals such as Ericsson AB of Sweden are trying to sell more services and software to wireless carriers to reduce reliance on cyclical network-equipment revenue. Phone companies in several key markets have largely completed their faster fourth-generation networks, putting pressure on infrastructure manufacturers such as Nokia to look for new customers and revenue streams.

The acquisition gives Nokia programs to help process and analyze data traveling in carriers’ networks – part of its plan to build a standalone software business, announced in 2015. The unit will focus on enterprise software and platforms for Internet-of-Things, and Nokia aims to make it as profitable as major companies in the field.

Last week, Nokia reported a 13 percent decline in fourth-quarter revenue to 6.7 billion euros as equipment sales plummeted. Services sales at Nokia’s networks business were relatively stable at about 2.5 billion euros. Bloomberg