Nokia has announced an agreement for Lumine Group to acquire Nokia’s Device Management (DM) and Service Management Platform (SMP) businesses. This transaction will benefit Nokia DM and SMP customers from Lumine’s telecommunications industry expertise, financial resources, and long-term product roadmap investment strategy.
This agreement reflects CNS’s investment focus in technology leading areas and active portfolio management in other areas. CNS has implemented a clear strategy in the past two years by establishing a technological leadership position and redirecting investments to strategic areas such as 5G core, secure autonomous operations, dedicated wireless and edge, network as a code, SaaS, etc., in order to achieve faster growth than the market. Earlier this year, Nokia announced the sale of its VitalQIP product to Cygna Labs Corp, And make Red Hat the main infrastructure platform for Nokia’s core network applications.
Lumine Group acquires, manages, and builds industry-specific software, focusing on the telecommunications and media sectors. With its strong balance sheet and market value, Lumine Group plans to operate DM and SMP as separate businesses, which will be called Motive.
As part of the transaction, approximately 500 Nokia device management and service management platform employees are expected to transfer to Lumine Group. The two companies will work closely together to ensure a smooth transition and business continuity.
The transaction is worth 185 million euros, including a contingent consideration of up to 35 million euros paid based on business performance in the first year after completion of the transaction. The transaction is expected to be completed in the first quarter of 2024, subject to certain terms and conditions, and consultation with the labor committee or other employee representative organizations required by law.
Nokia device management software features can help communication service providers remotely manage home broadband access devices, as well as IoT sensors and devices from various vendors; And the company’s service management platform has improved customer care services, covering over 150 deployments worldwide and managing over 1 billion devices.
Raghav Sahgal, President of Nokia Cloud and Network Services, said, “Nokia is pleased to have reached this agreement with Lumine, which is another sign of our strategic progress in focusing our investment on the most important areas of our business. Lumine Group has expertise in the telecommunications industry, as well as strategic priorities and resources, which will drive the device management and service management platform business towards a stronger future.”
David Sharpley, President of Lumine Group, said, “We are delighted to welcome customers and employees of the device management and service management platform to join Lumine. Consistent with our independent operating model, we will revive the traditional Motive brand for this new independent Lumine company. We look forward to working with Nokia to ensure operational continuity for all customers.”