Nokia Corp. (NYSE: NOK) announced that it agreed to by Finnish telecoms software firm Comptel for 347 million euros ($370 million). The acquisition was one of the steps to add technology to help phone carriers manage their networks as mobile operators more and more rely on software to improve their networks.
“The planned acquisition is part of Nokia’s strategy to build a standalone software business at scale by expanding and strengthening its software portfolio and go-to-market capabilities with additional sales capacity and a strategic partner network,” Comptel said in the statement.
The cash offer of Nokia, which was €3.04 per share, represents a premium of 29% of Comptel’s closing price on the Helsinki exchange Wednesday. In the deal, the board of directors and shareholders of Comptel hold around 48% of the shares. After the announcement, shares of Nokia jumped 1.5%, while shares of Comptel increased 31%.
However, the premium Nokia offered is low, and Comptel may not accept the offer. Nokia may have other competitors over the deal. In 2015, Nokia has successfully acquired the Alcatel-Lucent, which is a Franco-American network maker, in a €15.6 billion all-share deal. The acquisition helped Nokia to broaden its product portfolio.