Nokia has announced a tender offer of €3.04 per share in cash to buy Comptel as it tries to push its software strategy forward. The full value of the offer is €347 million, and it covers all of the company’s shares and option rights. Nokia agreed to pay between €2.56 per share and €1.53 per share in cash for each of Comptel’s various option rights, according to this morning’s press release.
Comptel’s board recommends Nokia’s offer
It represents a premium of 28.8% on the closing price of the Comptel shares on the Nasdaq Helsinki on Feb. 8, the last trading day before the announcement. It’s also a 51.2% premium on the volume-weighted average trading price on Nasdaq Helsinki in the 12 months before the offer was announced.
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Comptel’s board of directors said this morning that they intend to recommend that shareholders accept the tender offer. Nokia will publish a tender offer document on or around Feb. 24, and the offer period is expected to begin on or around Feb. 27.
Nokia is pushing its software strategy forward
The Finnish telco equipment company said it expects the Comptel acquisition to play an important role in its new software-focused strategy. It intends to combine its Service Assurance portfolio with the company’s Service Orchestration Portfolio, which it believes will “enable a dynamic closed loop between service assurance and fulfillment that simplifies management of complex heterogenous networks.” Nokia expects the acquisition to strengthen its software portfolio, add sales capacity, and increase its network of strategic partners.
“Nokia is committed to building its software business and is backing its commitment with strategic investments,” the president of Nokia’s Applications & Analytics business group, Bhaskar Gorti, said in a statement. “The timing of the Comptel purchase is important as our customers are changing the way they build and operate their networks. They are turning to software to provide more intelligence, automate more of their operations, and realize the efficiency gains that virtualization promises.”
The Finnish firm revealed its long-term software strategy in November, and part of the strategy involves strengthening its portfolio, services and go-to market. Nokia expects the Comptel acquisition to boost its go-to market efforts through its “software-dedicated sales force and strong partner network.”