Nokia has agreed to sell its Device Management (DM) and Service Management Platform (SMP) businesses to Canadian telecom and media software company Lumine Group for $185 million euros (approximately $203 million).
Nokia said that its Device Management software capabilities help communication service providers remotely manage home broadband access devices, IoT sensors and devices from various vendors. The company’s Service Management Platform focuses on customer care-related solutions that reduce time-to-resolution and incorporates machine learning; its customers include BT, and Nokia says that the DM and SMP support more than 150 deployments worldwide, with more than 1 billion devices under management.
Nokia said that the agreement to sell the DM and SMP business reflects its “focus on technology leadership areas, and the active portfolio management of others.” Nokia noted that it likewise divested its VitalQIP for IP address management to Cygna Labs earlier this year, and has made Red Hat the primary infrastructure platform for its Nokia Core Network applications.
About 500 Nokia employees are expected to transfer to Lumine Group as part of the transaction. Lumine Group plans to operate the DM and SMP as a standalone business, to be called Motive.
Raghav Sahgal, president of cloud and network services at Nokia called the deal “another sign of progress in our strategy to focus investment in those areas most important to our business. Lumine Group has the telecom industry expertise as well as the strategic focus and resourcing to drive the Device Management and Service Management Platform businesses forward to a stronger future.”
The deal is expected to close in the first quarter of 2024, Nokia said. The transaction includes an additional contingency of up to 35 million euros, depending on the performance of the business in the first year after closing.
