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Nokia (NOK) Acquires SpaceTime Insight to Augment IoT Market

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Nokia Corporation (NOK - Free Report) recently inked a deal to acquire SpaceTime Insight, a California-based IoT (Internet of Things) startup, for an undisclosed amount. The deal is aimed at expanding Nokia’s IoT portfolio and IoT analytics capabilities while expediting the development of new IoT applications for key vertical markets.

SpaceTime Insight provides machine learning-powered analytics and IoT applications for some of the world's largest transportation, energy and utilities organizations. The company’s machine learning models and other advanced analytics are primarily designed for asset-intensive industries. These models help to accurately measure asset health of the firms in order to reduce costs, risks and service outages, and increase operational efficiency.

The buyout supports Nokia's software strategy and leverages SpaceTime’s sales expertise and proven track record in IoT application development, machine learning and data science to augment the efficacy of the Nokia Software IoT product unit.

The latest move is likely to strengthen Nokia's IoT software portfolio and IoT analytics capabilities and accelerate the development of Nokia's IoT offerings, in order to deliver high-value IoT applications and services to new and existing customers.

Also, the addition of SpaceTime Insight will enhance Nokia's ability to deliver new, advanced applications for key vertical markets including energy, logistics, transportation and utilities.

Nokia facilitates its customers to move away from an economy-of-scale network operating model to demand-driven operations by offering easy programmability and flexible automation, in order to strengthen its market leading position. The company remains focused on its long-term growth strategy and continues to expand its business into targeted, high-growth and high-margin vertical markets.

Owing to diligent execution of operational plans, shares of Nokia have significantly outperformed the industry with an average return of 13.8% against a decline of 4.2% for the latter, in the past three months.



Nokia currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader industry are Comtech Telecommunications Corp. (CMTL - Free Report) , Micron Technology, Inc. (MU - Free Report) and Mellanox Technologies, Ltd. , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comtech Telecommunications has an expected long-term earnings growth rate of 5%. It has exceeded earnings estimates in each of the trailing four quarters, with an average of 111.4%.   

Micron Technology has an expected long-term earnings growth rate of 10%. It has exceeded earnings estimates in each of the trailing four quarters, with an average of 8%.      

Mellanox Technologies has an expected long-term earnings growth rate of 15%. It has exceeded earnings estimates in each of the trailing four quarters, the average being 13%.    

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