Nokia enter into $421 million acquisition

Nokia has announced that it is to acquire Amber Networks in a stock-for-stock merger valued at a net price of $421 million.

Nokia has announced the definitive agreement to acquire Amber Networks in a stock-for-stock merger at a net price of USD $421 million, payable partly in newly issued Nokia shares and partly in Nokia stock options, for all the outstanding securities of Amber Networks.

Amber Networks is a privately held networking infrastructure company widely known as the developer of the first fault-tolerant routing platform.

Founded in 1998 and currently employing 223 people, Amber Networks will integrate with the Network Platforms business area of Nokia Networks.

‘Our target is to shape future mobile network architectures, and this acquisition is a logical step in our strategy. Nokia is acquiring Amber Networks for its ability to develop fault-tolerant edge routers,’ said Dr. J.T. Bergqvist, Senior Vice President of Nokia Networks.

According to Nokia the share of data traffic is increasing in mobile networks and operators will gradually move towards IP-based network solutions.

IP-based networks are said to provide operators the opportunity to control traffic at the edge of their network. The network edge then increases in importance, as much of the intelligence and value of the network will reside in it.

According to a statement this acquisition further strengthens Nokia’s commitment to become the world leader in mobile network infrastructure by enhancing its technology position at the Intelligent Edge of future data-oriented mobile networks.

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