Nokia Buys Network Installer SAC Wireless

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Nokia Corporation (ADR) (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) said today that it plans to purchase SAC Wireless, a privately held installer of wireless network equipment. The terms of the deal were not disclosed.

Nokia targets the U.S.

In a press release today, Nokia said acquiring SAC Wireless will enable it to expand within the U.S. The Finnish networking company also is trying to increase its share of the network implementation market. Nokia also said SAC Wireless “has a national footprint and proven performance track record working with major telecom operators.” In addition, Nokia said the deal will “bring clear revenue synergies.”

Nokia also said the SAC Wireless acquisition will help it address some of the complexities involved in network infrastructure installation. The company said issues with permits, site acquisition, availability of sub-contractors, and quality often have a big impact on the amount of time it takes to roll out a network and bring it to market.

Nokia battles installation problems

For these reasons, the company said wireless network operators usually want greater direct control over the deployments of their networks. Nokia said it will use SAC Wireless’ resources and expertise in combination with its own in-house capabilities to “self-perform typically sub-contracted services.”

“As we continue to build an even stronger foundation for our U.S. services business, we see great opportunities to help our customers address the tough challenges of network deployment,” said Jorg Erlemeier, vice president of North America Market Services for Nokia Networks, in a statement. “These range from indoor/outdoor small cells, distributed antenna systems, 4G LTE upgrades, and solving backhaul connectivity and bandwidth issues.”

Deal expected to close this quarter

Nokia’s Networks segment will be making the acquisition, which the company expects to close in the third quarter of this year. Of course the deal is subject to approvals from the proper regulatory authorities.

SAC Wireless offers a number of services, including the SAC Wireless Engine Room, which is a site development management process. The company also can self-perform implementation of outdoor and indoor small cells and antenna systems. In addition, it offers turnkey program management for deployments of large scale.

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