In a €185 million transaction, Nokia has consented to sell its device management and service management platform businesses to Lumine Group.
The action, according to the corporation, is a component of its continuous efforts to reorganize its Cloud and Network Services (CNS) business.
About 500 employees of Nokia will be transferred to Lumine as part of the sale, which is expected to close in the first quarter of 2024. Lumine has been developing a wide range of communications networking software systems through a number of acquisitions over the past few years.
While the service management platform is used to track service performance for customer care objectives, the device management tools assist communication service providers (CSPs) in remotely managing broadband customer premises equipment (CPE) units and other devices, such as IoT sensors: According to Nokia, the program is in use in more than 150 locations across the globe.
David Sharpley, group president at Lumine Group, noted:
“We are thrilled to welcome device management and service management platform customers and employees to Lumine. Consistent with our autonomous operating model, we will be reviving the heritage Motive brand for this new standalone Lumine company and we look forward to partnering with Nokia to ensure operational continuity with all customers.”
In May, Nokia sold its VitalQIP DDI products to Cygna Labs and offloaded its cloud platform (CloudBand), container services, and core network application development resources and staff (roughly 350 employees) to Red Hat as part of the CNS division’s “active portfolio management”: Domain name system (DNS), IP address management (IPAM), and dynamic host configuration protocol (DHCP) technologies are all part of DDI.
The divestment was announced as Nokia looks for methods to reduce expenses in order to reach its financial goals: The vendor had to rework its medium-term financial projections when AT&T lost its radio access network (RAN) contract, and it had already announced in October that it was laying off up to 14,000 employees as part of a corporate reorganization process.