Nokia and Volaris Group Inc, a Toronto-based software company, have entered into an agreement on the sale and transfer of the majority of Nokia’s IP Video business
A substantial part of Nokia’s video product portfolio and employees are planned to move to Velocix, a new independent pure play streaming technology company in Volaris’ Communications & Media portfolio
The transitioning team will continue to manage and develop the transferring business and support existing customers as well as to drive the growth strategy in Velocix
Under the agreed terms, Nokia becomes a minority shareholder and a global sales channel partner of Velocix
13 September, 2018
Espoo, Finland – Nokia today announced plans to divest its IP Video business to Volaris Group (“Volaris”), a Toronto-based software company. Nokia’s video product portfolio – including its caching and streaming products, origin and storage technology, and stream personalization software – is expected to move to Volaris and launch a new pure play streaming technology company, Velocix, operating as an independent business within Volaris Group’s Communications & Media portfolio. Nokia will remain a minority shareholder in the new entity and continue to play a critical role in supporting the company’s growth. The planned deal is expected to close during Q4 2018, subject to customary closing conditions. Financial details are not being disclosed.
The majority of Nokia’s IP Video business employees are expected to transition to Velocix. Nokia will become a Global Channel Partner for Velocix, enabling it to continue to sell and support Velocix video solutions. Nokia will maintain certain elements of its video unit, including integration business and associated employees, to provide continued support for existing customers.
David Nyland, Portfolio Leader and President, Communications & Media at Volaris, said: “Volaris is truly excited by this pending acquisition of Nokia’s market-leading video streaming portfolio. This planned transaction marks our first investment in the highly dynamic media technology sector and we look forward to using it as a springboard for growth.”
Paul Larbey, head of the IP Video Business at Nokia, said: “We are excited to be part of the new company under the Velocix brand that set out to transform the video landscape back in 2002. Through several acquisitions the name changed, but the purpose remains the same: to enable big changes in the video market, to make video more personal and to enable a highly compelling entertainment experience for consumers on every screen.”
Basil Alwan, Co-President of IP/Optical Networks at Nokia said: “Video plays a very important role in our customers’ strategies, both as it relates to their services and the demands it places on their networks. Meanwhile, the technology behind video – including user experience, content packaging and delivery – continues to go through meaningful shifts. Our new partnership enables us to adapt and grow in this important period; together we can better navigate change while providing continuity for our customers.”
Velocix will be at the IBC Show on September 14 – 18 exhibiting its latest products and thought leading perspectives on the future of personalized video entertainment. Visit Hall 15, stand MS35 (15.MS35) to meet with the management team and learn more about their plans.
About Volaris Group
Volaris acquires, strengthens and grows vertical market technology companies. As an Operating Group of Constellation Software Inc., Volaris is all about strengthening businesses within the markets they compete and enabling them to grow – whether that growth comes through organic measures such as new initiatives and product development, day-to-day business, or through complementary acquisitions. Learn more at www.volarisgroup.com.
About Velocix
Velocix is the streaming technology company that makes video personal, on every connected screen. We enable each stream to be personalized, dynamically adapting it to ensure every viewing experience is not just unique but enriched. Our solutions are used to engage, entertain, and inform millions of people around the globe, every single day. In partnership with our customers, including network service providers, video service operators, broadcasters, programmers, and content owners, we are forever improving how people connect with content and thereby making the world a better place, one stream at a time. velocix.com
About Nokia
We create the technology to connect the world. Powered by the research and innovation of Nokia Bell Labs, we serve communications service providers, governments, large enterprises and consumers, with the industry’s most complete, end-to-end portfolio of products, services and licensing.
We adhere to the highest ethical business standards as we create technology with social purpose, quality and integrity. Nokia is enabling the infrastructure for 5G and the Internet of Things to transform the human experience. nokia.com
Media Inquiries:
Nokia Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Forward-looking statements
It should be noted that Nokia and its businesses are exposed to various risks and uncertainties and certain statements herein that are not historical facts are forward-looking statements, including, without limitation, those regarding: A) our ability to integrate acquired businesses into our operations and achieve the targeted business plans and benefits, including targeted benefits, synergies, cost savings and efficiencies; B) expectations, plans or benefits related to our strategies and growth management; C) expectations, plans or benefits related to future performance of our businesses; D) expectations, plans or benefits related to changes in organizational and operational structure; E) expectations regarding market developments, general economic conditions and structural changes; F) expectations and targets regarding financial performance, results, operating expenses, licensing rates, taxes, currency exchange rates, hedging, cost savings and competitiveness, as well as results of operations including targeted synergies and those related to market share, prices, net sales, income and margins; G) expectations, plans or benefits related to any future collaboration or to business collaboration agreements or patent license agreements or arbitration awards, including income to be received under any collaboration or partnership, agreement or award; H) timing of the deliveries of our products and services; I) expectations and targets regarding collaboration and partnering arrangements, joint ventures or the creation of joint ventures, and the related administrative, legal, regulatory and other conditions, as well as our expected customer reach; J) outcome of pending and threatened litigation, arbitration, disputes, regulatory proceedings or investigations by authorities; K) expectations regarding restructurings, investments, capital structure optimization efforts, uses of proceeds from transactions, acquisitions and divestments and our ability to achieve the financial and operational targets set in connection with any such restructurings, investments, capital structure optimization efforts, divestments and acquisitions; and L) statements preceded by or including “believe”, “expect”, “anticipate”, “foresee”, “sees”, “target”, “estimate”, “designed”, “aim”, “plans”, “intends”, “focus”, “continue”, “project”, “should”, “is to”, “will” or similar expressions. These statements are based on management’s best assumptions and beliefs in light of the information currently available to it. Because they involve risks and uncertainties, actual results may differ materially from the results that we currently expect. Factors, including risks and uncertainties that could cause these differences include, but are not limited to: 1) our strategy is subject to various risks and uncertainties and we may be unable to successfully implement our strategic plans, sustain or improve the operational and financial performance of our business groups, correctly identify or successfully pursue business opportunities or otherwise grow our business; 2) general economic and market conditions and other developments in the economies where we operate; 3) competition and our ability to effectively and profitably invest in new competitive high-quality products, services, upgrades and technologies and bring them to market in a timely manner, 4) our ability to achieve targeted benefits from, or successfully implement planned transactions, as well as the liabilities related thereto, as well as the risk factors specified on pages 71 to 89 of our 2017 annual report on Form 20-F published on March 22, 2018 under “Operating and financial review and prospects-Risk factors” and in our other filings or documents furnished with the U.S. Securities and Exchange Commission. Other unknown or unpredictable factors or underlying assumptions subsequently proven to be incorrect could cause actual results to differ materially from those in the forward-looking statements. We do not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
PR Archives: Latest, By Company, By Date