Nokia Networks (NYSE:NOK) said it will buy SAC Wireless, a wireless network equipment installation specialist. The companies did not disclose the financial terms of the deal.
The deal for Schaumburg, Ill.-based SAC is expected to close in the third quarter. Nokia said the transaction "is expected to bring clear revenue synergies." SAC has around 450 employees, and Nokia said the firm has proven expertise to complement its own in-house capabilities to self-perform services for carriers that are typically sub-contracted.
"This acquisition builds on our existing strengths and continued investment in our customers' success. Once the transaction has been completed, it will help us increase market share in the network implementation space," Ricky Corker, executive vice president of North America for Nokia Networks, said in a statement. "With SAC Wireless' capabilities complementing our own in-house expertise, we are well positioned to bring enhanced quality and increased end-to-end delivery efficiency to our customers. No other infrastructure provider is offering this level of proven services."
Nokia noted that a variety of factors can hinder how quickly networks get rolled out, including complexities surrounding site acquisition, permitting and sub-contractor availability and quality. Nokia said the SAC deal will help it overcome such challenges.
Nokia scored $7.5 billion when its deal to sell its handset business to Microsoft (NASDAQ: MSFT) closed at the end of April. Nokia's wireless networks business is now the cornerstone of its operations. The company said that it wants to build a strong U.S. business, especially for the deployment of indoor and outdoor small cells, Distributed Antenna Systems and backhaul. The company said it expects SAC's expertise to help it in those areas.
The deal comes after Nokia in June acquired Mesaplexx, which will give Nokia innovative filter technology that can be used to reduce the size, weight and cost of active antenna or compact small-cell systems.
The deals seem to be in line with new CEO Rajeev Suri's plan to acquire smaller firms that will fill gaps in Nokia's wireless product portfolio. Suri was previously CEO of Nokia Solutions and Networks before the Microsoft deal closed.
For more:
- see this release
- see this Reuters article
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