Nokia has announced a significant agreement that will see Lumine Group Inc. acquiring its Device Management (DM) and Service Management Platform (SMP) businesses.
This strategic move is set to bring about exciting changes in the telecom industry, with a focus on enhancing customer experience and technological innovation.
The agreement signifies a pivotal shift in Nokia’s investment strategy, reflecting a concerted effort to align with technology leadership areas such as 5G Core, secure autonomous operations, private wireless and edge, network as code, and SaaS. By divesting certain products and redirecting resources, Nokia aims to accelerate its growth and solidify its position in key strategic areas.
Lumine Group, known for its prowess in managing and building industry-specific software, particularly in the telecom and media space, brings a wealth of experience and financial resources to the table. With a strong balance sheet and market capitalization, Lumine Group is poised to operate the acquired businesses as a standalone entity under the name “Motive.”
Approximately 500 Nokia employees from the Device Management and Service Management Platform are expected to transition to Lumine Group as part of the deal. Both companies are committed to ensuring a seamless transition and uninterrupted business operations for customers.
The deal, valued at EUR 185 million, includes a contingent consideration of up to EUR 35 million based on the business’s performance in the first year post-close. The anticipated closing date is set for the first quarter of 2024, subject to specific terms, conditions, and consultations as required by law.
Nokia’s Device Management software capabilities enable communication service providers to remotely manage home broadband access devices and IoT sensors from various vendors. Additionally, the Service Management Platform enhances customer care services, covering over 150 deployments worldwide and managing more than 1 billion devices.
Raghav Sahgal, President of Cloud and Network Services at Nokia, expressed optimism about the agreement, emphasizing the strategic importance of focusing investments on core business areas.
David Sharpley, Group President at Lumine Group, conveyed enthusiasm about welcoming Nokia’s customers and employees, highlighting the revival of the Motive brand for the new standalone Lumine company.
