Nokia to Sell Device Management and Service Management Platform Businesses to Lumine Group
Nokia announced today that two businesses within the Nokia Cloud and Network Services group will be sold to Canadian Lumine Group. If you’re not familiar with these two divisions, Nokia’s Device Management software assists communication service providers in remotely overseeing home broadband access devices and IoT sensors from various vendors. The company’s Service Management Platform enhances customer care services, overseeing more than 1 billion devices with a global presence across over 150 deployments.
In any case, this deal will allow Nokia to invest in other strategic areas, strengthening its position in the ever-changing market. The company values these two businesses at approximately EUR 185 million. The deal also includes contingent consideration of up to EUR 35 million based on the business’s performance during the first year following the close.
As part of the deal expected to be finalized in the first quarter of 2024, around 500 employees from Nokia’s Device Management and Service Management Platform will transition to Lumine Group. Lumine Group plans to operate DM and SMP as an independent business entity named Motive.
Lumine Group, headquartered in Mississauga, Canada, comprises several subsidiaries such as Wideorbit, TOMIA, and Incognito Software Systems. The company specializes in acquiring, managing, and developing industry-specific software tailored to the telecom and media sectors.
Leveraging its robust financial position and market capitalization, this agreement is poised to strengthen the Group’s software portfolio. Lumine is set to gain significant advantages from Nokia’s existing customer base, capitalizing on its telecom industry proficiency, financial strength, and strategic commitment to long-term product development.
The last time Nokia sold some of its business was back in 2020 when Canadian company Vecima Networks, which is also a Canadian company that works with Lumine Group, acquired a part of Nokia’s cable business. Interesting.
