Nokia to sell its IP Video business to Volaris Group
Nokia has confirmed plans to divest its IP Video business to Volaris Group (Volaris), a Toronto-based software company.
The undisclosed deal will see Nokia's video product portfolio, which includes its caching and streaming products, origin and storage technology, and stream personalisation software, move to Volaris. At the same time it will launch a new pure play streaming technology company called Velocix, which will operate as an independent business within Volaris Group's Communications & Media portfolio.
"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," said David Nyland, portfolio leader and president of communications & media at Volaris.
Nokia will remain a minority shareholder in the new formed Velocix and will continue to play a key role in supporting the company's growth. The planned deal is expected to close during the fourth quarter 2018, subject to the standard closing conditions.
"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,” said Paul Larbey, head of the IP video business at Nokia. “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."
Most of Nokia's IP video business employees are expected to transition over to the new company. Once the deal is complete Nokia will become a global channel partner for Velocix, enabling it to continue to sell and support Velocix video solutions. In addition, Nokia will maintain certain elements of its video unit, including its integration business and associated employees, to continue providing support for existing customers.
"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," added Basil Alwan, co-president of IP/Optical networks at Nokia.