Nokia Buys Comptel for 347 Million Euros

Nokia agreed to buy Comptel for 347 million euros to add technology that helps phone carriers manage their networks, part of a push into software and services as network-gear sales sputter, according to Bloomberg. Comptel shareholders will get 3.04 euros a share in cash, Nokia said in a statement. That’s 29 percent more than stock price on the Helsinki exchange before the deal was struck.

Nokia and rivals such as Ericsson 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.

“Operators today are trying to move from being traditional communications companies to digital-service providers,“ Bhaskar Gorti, head of Nokia’s Applications & Analytics unit, said at a Helsinki media conference. “Nokia and Comptel strongly believe that we, together, can help our customers in their transformation.“ Nokia may get competition from other bidders, analysts at FIM said in a note. The premium is low and it’s possible shareholders don’t accept Nokia’s offer, the analysts said. Comptel’s board recommends the offer.

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.