Nokia is selling the former Alcatel business Velocix and exiting the market for video delivery equipment. Toronto-based private equity group Volaris will continue its expansion in the video market with the acquisition and take over Velocix for an undisclosed sum, including the majority of Nokia's IP Video employees.
The Nokia portfolio includes caching and streaming products, origin and storage technology, and stream personalization software. Volaris will launch a new streaming technology company, Velocix, operating as an independent business within Volaris Group's Communications & Media portfolio. Nokia will remain a minority shareholder in the new entity and continue to act as a distributor.
The sale is expected to close during Q4. No financial details were disclosed. Nokia said it will maintain certain elements of its video unit, including integration business and associated employees, to provide continued support for existing customers.
The acquisition by Volaris builds on previous takeovers including Sicap, Netadmin Systems and Telepin Software. Its Communications and Media division also includes Incognito, Tarantula, Aleyant and Active Broadband Networks.
