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Nokia (NOK) Optimizes Portfolio With Strategic Divestiture
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Nokia Corporation (NOK - Free Report) has completed the divesture of its Device Management and Service Management Platform businesses to Lumine Group Inc., a global communications and media software acquirer. Valued at 185 million euros with potential for additional 35 million euros based on post-deal performance, this acquisition underscores Lumine's commitment to bolstering its portfolio.
The businesses, now rebranded under the iconic "Motive" name, will function as an autonomous unit within Lumine. This acquisition complements Lumine's autonomous operating model and strengthens its telecom industry foothold.
With Nokia's extensive reach encompassing more than 1 billion devices and 150 deployments worldwide, Lumine is poised to capitalize on a vast market landscape. The integration of Nokia's Device and Service Management businesses underscores Lumine's commitment to investing in a long-term product roadmap, enhancing its value proposition in the communications and media software sector.
Nokia's strategic divestiture aligns with its Cloud and Network Services (CNS) group's vision, focusing on driving technology leadership and achieving accelerated growth. By shedding non-core assets and concentrating on pivotal areas such as network innovation and 5G development, Nokia aims to optimize its CNS business portfolio for long-term success.
Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale products, which enables customers to upgrade to 5G quickly, is growing fast. It is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, it is transforming the way people and things communicate and connect.
The company aims to create new business and licensing opportunities in the consumer ecosystem. It facilitates customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation required to support dynamic operations, reduce complexity and improve efficiency. It seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.
The stock has lost 28.3% in the past year against the industry’s growth of 15.6%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Nokia currently carries a Zacks Rank #2 (Buy).
AudioCodes Ltd. (AUDC - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 20.1%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Headquartered in White Plains, NY, Turtle Beach Corporation (HEAR - Free Report) develops and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand.
Turtle Beach is well-positioned to benefit from quality products and enjoys a solid foothold in its served markets. Its headsets are suited for learning and working remotely via video or audio conferencing. This Zacks Rank #2 stock has a long-term earnings growth expectation of 16%. It has a VGM Score of A.
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Nokia (NOK) Optimizes Portfolio With Strategic Divestiture
Nokia Corporation (NOK - Free Report) has completed the divesture of its Device Management and Service Management Platform businesses to Lumine Group Inc., a global communications and media software acquirer. Valued at 185 million euros with potential for additional 35 million euros based on post-deal performance, this acquisition underscores Lumine's commitment to bolstering its portfolio.
The businesses, now rebranded under the iconic "Motive" name, will function as an autonomous unit within Lumine. This acquisition complements Lumine's autonomous operating model and strengthens its telecom industry foothold.
With Nokia's extensive reach encompassing more than 1 billion devices and 150 deployments worldwide, Lumine is poised to capitalize on a vast market landscape. The integration of Nokia's Device and Service Management businesses underscores Lumine's commitment to investing in a long-term product roadmap, enhancing its value proposition in the communications and media software sector.
Nokia's strategic divestiture aligns with its Cloud and Network Services (CNS) group's vision, focusing on driving technology leadership and achieving accelerated growth. By shedding non-core assets and concentrating on pivotal areas such as network innovation and 5G development, Nokia aims to optimize its CNS business portfolio for long-term success.
Nokia is well-positioned for the ongoing technology cycle, given the strength of its end-to-end portfolio. Its installed base of high-capacity AirScale products, which enables customers to upgrade to 5G quickly, is growing fast. It is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. Leveraging state-of-the-art technology, it is transforming the way people and things communicate and connect.
The company aims to create new business and licensing opportunities in the consumer ecosystem. It facilitates customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation required to support dynamic operations, reduce complexity and improve efficiency. It seeks to expand its business into targeted, high-growth and high-margin vertical markets to address growth opportunities beyond its traditional primary markets.
The stock has lost 28.3% in the past year against the industry’s growth of 15.6%.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Nokia currently carries a Zacks Rank #2 (Buy).
AudioCodes Ltd. (AUDC - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 20.1%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
Arista Networks, Inc. (ANET - Free Report) , carrying a Zacks Rank #2, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Headquartered in White Plains, NY, Turtle Beach Corporation (HEAR - Free Report) develops and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand.
Turtle Beach is well-positioned to benefit from quality products and enjoys a solid foothold in its served markets. Its headsets are suited for learning and working remotely via video or audio conferencing. This Zacks Rank #2 stock has a long-term earnings growth expectation of 16%. It has a VGM Score of A.