Nokia to buy Comptel for $370 million to strengthen its software arm

The planned acquisition is part of Nokia's strategy to build a standalone software business

To expand its software techonology, Finnish telecom equipment maker Nokia announced its intention to acquire Comptel for 347 million euros ($370 million).

"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," Nokia said via a press statement.

Nokia to acquire Comptel

It said, "Comptel would bolster Nokia's software portfolio by adding critical solutions for catalogue-driven service orchestration and fulfillment, intelligent data processing, customer engagement, and agile service monetisation."Vodafone and Idea merger will be favourable, says India Ratings.

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Nokia said its customers were now turning to software to make their networks more intelligent.

Pertti Ervi, Chairman of the Board at Comptel says, "After careful examination of the Tender Offer, the Board of Directors of Comptel has unanimously decided to recommend the shareholders to accept it."

He said, "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."

In 2016, Nokia bought Alcatel-Lucent at a vast sum of 15.6 billion Euros all-share deal and is cutting thousands of jobs as it seeks to reduce annual costs by EUR 1.2 billion ($1.3 billion) by 2018.

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