Nokia Divests Device Management and Service Management Platform Businesses

Global telecom provider Nokia announced an agreement under which Lumine Group Inc. will buy Nokia’s Device Management (DM) and Service Management Platform (SMP) businesses.  Nokia Device Management software helps communication service providers remotely manage home broadband access devices as well as IoT sensors and devices from a variety of different vendors.  The company’s Service Management Platform improves customer service, with coverage spanning more than 150 deployments worldwide and more than 1 billion devices under management.

The deal marks further progress in Nokia’s strategy to actively manage its Cloud and Network Services (CNS) business group portfolio in order to invest in other strategic areas and enhance technology leadership. The agreement reflects CNS’ investment focus on technology leadership areas and the active portfolio management of others. 

CNS has executed a growth strategy over the past two years focused on establishing technology leadership and reorienting investment toward strategic areas of 5G Core, secure autonomous operations, private wireless and edge, network as code, and SaaS. The deal follows Nokia announcements earlier this year to divest its VitalQIP products to Cygna Labs Corp and to make Red Hat the primary infrastructure platform for Nokia Core Network applications.

Lumine Group acquires, manages, and builds industry-specific software, focused on the telecom and media space. According to Nokia, the deal will enable Nokia DM and SMP customers to benefit from Lumine’s telecom industry expertise, financial resources, and strategy to invest in a long-term product roadmap. Lumine Group intends to operate DM and SMP as a standalone business, which will be called Motive.

The deal is valued at EUR 185 million, which includes a contingent consideration of up to EUR 35 million based on the performance of the business during the first year following close. The deal is expected to close in the first quarter of 2024.  Approximately 500 Nokia Device Management and Service Management Platform employees are expected to transfer to Lumine Group as part of the deal. Both companies will work closely together to ensure a smooth transition and business continuity.

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