Skip to main content

Nokia Networks to acquire Eden Rock to enhance its SON portfolio

Press Release

Acquisition aimed at further strengthening Nokia Networks' expertise in multivendor Self-Organizing Networks ("SON")

Espoo, Finland - 27 May 2015

Nokia Networks has signed an agreement to acquire Eden Rock Communications, LLC (hereinafter referred to as "Eden Rock"), a pioneer in SON and creator of Eden-NET, an industry leading multivendor centralized SON solution. Through this acquisition, Nokia Networks aims to boost its multivendor SON radio optimization capabilities and reaffirm its vision to become the vendor-of-choice in this domain. The transaction is expected to be completed during Q3 2015.

Click to Tweet: Breaking news: @edenrockcomm set to be acquired by @nokianetworks to boost multivendor SON offering #NetworksPerform http://nokia.ly/1SBsewe

SON, one of the fastest growing segments in the mobile broadband industry, is a strategically important market for Nokia Networks. SON is essential for the increasingly complex heterogenous operator networks. It provides workflow automation, network performance improvements and additional reliability.

Key highlights: 

  • Eden Rock's Eden-NET centralized SON solution and Nokia Networks' SON technologies are highly complementary and provide an excellent basis to build industry leading SON solutions for a wide range of market needs
  • This combination, coupled with Nokia Networks' go to market and global services capability, can reduce operating expenses, drive measurable improvements in customer experience, and thus contribute to maximizing overall profitability for mobile operators
  • After the completion of necessary legal and regulatory approvals, Eden Rock's employees are expected to be transferred to Nokia Networks, based in Seattle, where the company intends to continue operations

Peter Patomella, Vice President, CEM and OSS, Nokia Networks, said: "The size of the optimization and SON market is expected to exceed EUR 5 billion globally by 2018*. With this combination of capabilities, we will effectively address a key customer pain point - automated optimization of heterogenous networks in a multivendor environment. By combining our products into one, we will accelerate the delivery of a compelling solution for this problem and provide best-in-class network performance and customer experience."

Charles Immendorf, CEO, Eden Rock, said: "A massive appetite exists among operators for a proven SON solution with disruptive technologies, open framework and carrier-class capabilities. Via this acquisition, Nokia Networks brings SON functionality that is complimentary to our Eden-NET solution, a renowned reputation for wireless excellence and an ascending market presence. We will be honored to serve under the Nokia banner and aim to establish an insurmountable lead within the SON space."

Did you know?
At Mobile World Congress 2015, Nokia Networks unveiled the iSON Manager, a centralized Self Organizing Networks (SON) solution for the automation of multivendor heterogeneous networks. The company has also launched a new cloud based OSS/CEM business model that delivers the Nokia iSON Manager software to operators fast and flexibly. In 2014, Nokia won the GSMA award for implementing and integrating SON solutions with Telefonica O2 UK.

Connect with Nokia Networks: 

TAGS: Eden Rock, Nokia Networks, M&A, Self-Organizing Networks, SON, acquisition, Mobile Broadband

About Eden Rock Communications
Founded in 2007, Eden Rock Communications is a pioneer in the SON space and creator of an industry leading multi-vendor, multi-technology, centralized SON solution, Eden-NET. Protected by 26 issued and 70+ pending patents, Eden Rock's transformational SON technologies deliver the ultimate in network performance, network reliability and operational efficiencies. Developed from the ground-up to address operators' emerging needs for SON, Eden-NET provides a highly extensible SON operating system and has inspired a new paradigm of SON collaboration. The Eden-NET SON solution has been proven at-scale, providing SON functionality to over 1 million cells and 60 million subscribers globally. For more information, visit www.edenrockcomm.com.

About Nokia
By focusing on the human possibilities of technology, Nokia embraces the connected world to help people thrive. Our three businesses are leaders in their fields. Nokia Networks provides broadband infrastructure software and services, HERE provides mapping, navigation and location intelligence, and Nokia Technologies provides advanced technology development and licensing.
www.nokia.com

Nokia Networks, which provides broadband infrastructure, software and services, operates at the forefront of our industry. From the first ever call on GSM to the first call on LTE, we have set the pace of innovation, a record that continues with future technologies such as 5G. Together with our operator customers, who serve close to 5 billion subscribers, we are embracing the opportunity of the connected world and helping to solve its challenges.
http://networks.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) expectations, plans or benefits related to Nokia's strategies;
B) expectations, plans or benefits related to future performance of Nokia's businesses Nokia Networks, HERE and Nokia Technologies; C) expectations, plans or benefits related to changes in our management and other leadership, operational structure and operating model; D) expectations regarding market developments, general economic conditions and structural changes; E) expectations and targets regarding performance, including those related to market share, prices, net sales and margins; F) timing of the deliveries of our products and services; G) expectations and targets regarding our financial performance, operating expenses, taxes, cost savings and  competitiveness, as well as results of operations; H) expectations and targets regarding collaboration and partnering arrangements; I) outcome of pending and threatened litigation, arbitration, disputes, regulatory proceedings or investigations by authorities; J) expectations regarding restructurings, investments, 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, divestments and acquisitions, including any expectations, plans or
benefits related to or caused by the transaction where Nokia sold substantially all of its Devices & Services business to Microsoft on April 25, 2014; and K) statements preceded by or including "believe," "expect," "anticipate," "foresee," "sees," "target," "estimate," "designed," "aim," "plans," "intends," "focus," "continue," "project," "should," "will" or similar expressions. These statements are based on the 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. We describe the risks and uncertainties that affect the Nokia Group or are relevant to all Nokia businesses at the beginning of this section and provide towards the end information on additional risks that are primarily related to the individual Nokia businesses: Nokia Networks, HERE and Nokia Technologies. Factors, including risks and uncertainties that could cause such differences include, but are not limited to: 1) our ability to identify market trends and business opportunities to select and execute strategies successfully and in a timely manner, and our ability to successfully adjust our operations and operating models; 2) our ability to sustain or improve the operational and financial performance of our businesses and correctly identify or successfully pursue new business opportunities; 3) our dependence on general economic and market conditions; 4) our exposure to regulatory, political or other developments in various countries or regions; 5) our ability to invent new relevant technologies, products and services, to develop and maintain our intellectual property portfolio and to maintain the existing sources of intellectual property related revenue and establish new such sources; 6) our ability to protect our intellectual property rights and defend against third-party infringements and claims that we have  infringed third parties' intellectual property rights, as well as increased licensing costs and restrictions on our ability to use certain technologies; 7) the potential complex tax issues, tax disputes and tax obligations we may face, including the obligation to pay additional taxes in various jurisdictions and our actual or anticipated performance, among other factors, which could reduce our ability to utilize deferred tax assets; 8) our ability to retain, motivate, develop and recruit appropriately skilled employees; 9) the performance of the parties we partner and collaborate with, as well as that of our financial counterparties, and our ability to achieve successful collaboration or partnering arrangements; 10) exchange rate fluctuations, particularly between the euro, which is our reporting currency, and the US dollar, the Japanese yen and the Chinese yuan, as well as certain other currencies; 11) the impact of unfavorable outcome of litigation, arbitration, contract-related disputes or allegations of health hazards associated with our businesses; 12) any inefficiency, malfunction or disruption of a system or network that our operations rely on or any impact of a possible cybersecurity breach; 13) our ability to achieve targeted benefits from or successfully implement planned transactions, such as acquisitions, divestments, mergers or joint ventures, and manage unexpected liabilities related thereto; 14) our ability to manage our operating expenses and reach targeted results through efforts aimed at improving our financial performance, for instance through cost savings and other efforts aimed at increased competitiveness; 15) our ability to optimize our capital structure as planned and re-establish our investment grade credit rating; 16) Nokia Networks' ability to execute its strategy or to effectively and profitably adapt its business and operations in a timely manner to the increasingly diverse needs of its customers in the mobile broadband infrastructure and related services market or to such technological developments; 17) Nokia Networks' 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; 18) Nokia Networks' dependence on a limited number of customers and large multi-year agreements and adverse effects as a result of further operator consolidation; 19) Nokia Networks' ability to manage our manufacturing, service creation and delivery, as well as our logistics efficiently and without interruption; 20) Nokia Networks' dependence on a limited number of suppliers, who may fail to deliver sufficient quantities of fully functional products and components or deliver timely services meeting our customers' needs; 21) adverse developments with respect to customer financing or extended payment terms Nokia Networks provides to customers; 22) the intense competition HERE faces and its ability to effectively and profitably invest in new competitive high-quality services and data and bring these to market in a timely manner or adjust its operations efficiently; 23) HERE's dependence on the overall automotive market developments and customer business conditions; 24) HERE's dependence, especially with respect to sales to the automotive industry, on a limited number of customers and large multi-year agreements; 25) Nokia Technologies' ability to maintain its existing sources of intellectual property related revenue or establish new sources; 26) Nokia Technologies' dependence on a limited number of key licensees that contribute proportionally significant patent licensing income, including the outcome of the binding arbitration with Samsung expected in 2015; 27) Nokia Technologies' dependence on adequate regulatory protection for patented or other propriety technologies; and 28) Nokia Technologies' ability to execute its plans through business areas such as technology licensing, licensing the Nokia brand and other business ventures including technology innovation and incubation, as well as the risk factors specified on pages 74 to 89 of Nokia's latest annual report on Form 20-F under "Operating and Financial Review and Prospects-Risk factors". 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. Nokia does 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.

Media Enquiries

Nokia Networks
Media Relations         
Phone: +358 7140 02869
E-mail: mediarelations@nokia.com

Notes:

* Stéphane Téral, Research Director Mobile Infrastructure and Carrier Economics, IHS Infonetics SON and optimization software market forecast October 2014.

End of the release / See all releases

Nokia press subscription

Categories you want to subscribe to

*required information

Enquiries on this topic

Media contact

Media enquiries

Tel. +358 10448 4900
Helsinki · Night GMT +2 / CEST

Investors contact

Investor enquiries

Tel. +358 40 803 4080
Helsinki · Night GMT +3 / EEST