Nokia Announces Acquisition Of Elenion For An Undisclosed Fee

Nokia Announces Acquisition Of Elenion For An Undisclosed Fee

In an attempt to boost its optical offering portfolio, Nokia Oyj announced on Wednesday that it will be acquiring the U.S. based Elenion Technologies. The Finnish network components giants are expecting the deal to boost its optical networking business while also expanding the options it has on offer for its telecom partners. The value of the acquisition was kept undisclosed, but considering the impact Elenion Technologies was having on the network component making industry, the amount is expected to be in the higher range. The companies are expected to close the deal by as early as the end of Q1-2020 after completing all regulatory clearances.

The highlight from Elenion is the company’s proprietary silicon photonics design platform that can help reduce the average cost of production for network operators. Nokia has been registering some significant growth in its optical businesses ever since the acquisition of Alcatel-Lucent in 2016. The same continued as the company reflected healthy growth in its optical businesses and IP routing in its fourth quarter earnings report. The acquisition can help Nokia in its core mobile business as well, as Elenion’ssilicon photonics technologies can help them develop high-performance and short-reach optical interfaces. These optical interfaces can come in very handy for Nokia as the market now inches closer to 5G evolution.

Nokia is undergoing a significant restructuring of its organization, as it plans to adapt according to its future business goals. As plans of its restructuring, the company has announced it will no longer have the Chief Information Officer in place, a post last held by Ursula Soritsch-Renier. The responsibilities of that post will now be shouldered by the company’s president for software unit and the chief digital officer, BhaskarGorti. The change was done at th beginning of the year but was announced only recently.

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