Nokia is exploring the sale of its managed services business23. 07. 2022 Saturday / By: Robert Denes / Business / Exact time: BST / Print this page
N okia is investigating the sale of its managed services business, according to Bloomberg, based on sources familiar with the matter.
According to Bloomberg, Nokia is working with consultants to determine the interest of potential buyers in the business. Nokia's managed services business, which offers operators various services related to network maintenance and operation, is said to bring in about €500 million in annual revenue and is attracting interest from equity investors. The Finnish telecommunications company is working with consultants to gauge interest from potential suitors, the people said, asking not to be identified to discuss confidential information. The unit has annual revenue of about 500 million euros ($510 million) and is expected to raise interest from private equity firms, the people said.
Nokia reports that the business is part of Nokia Cloud and Network Services. According to Bloomberg, discussions about the fate of the business are ongoing, and it is not certain that Nokia will continue with the sale. This week, Nokia reported an April-June result that exceeded preliminary expectations. Negotiations are ongoing and it is not certain that Nokia will decide to dispose of it. A Nokia representative declined to comment.
In the Cloud and network services business, which includes the managed services business that is being sold, the turnover increased by 7 percent, to 753 million euros, compared to a year ago. However, without exchange rate changes, the increase would not have occurred (0% change). The operating result of cloud and online services was EUR -5 million compared to EUR 10 million a year earlier. Nokia has recently tried to improve the profitability of the business group by directing its investments and focus to the most attractive growth areas.Via Link