Nokia (NOK) Boosts Software Portfolio Through Comptel Buyout

Nokia (HE:NOKIA) Corporation (NYSE:NOK) has completed its acquisition of Comptel Corporation, a Finnish telecommunications software company. The acquisition plans were made public on Feb 9.

This buyout enables the acquirer to build up a standalone software business by bolstering its software portfolio. The buyout boosts Nokia’s software portfolio by adding capabilities that help digital service providers deliver new communications services to the market faster. The purchase also enhances the acquiring company’s portfolio in several other ways including capturing data-in-motion.

Together, the two companies will be able to offer a highly-developed software intelligence and real-time network information to bring about improved digital experiences.

It is significant to remind investors that Nokia’s growth-by-acquisition strategy is impressive. Earlier in the year, the company had completed its acquisition formalities for Deepfield, the US-based leader in real-time analytics for IP network performance management and security. Last year, the company had effected a series of acquisitions including, Alcatel-Lucent (PA:ALUA), Withings S.A. and Gainspeed.

Nokia’s recent resolution of the patent-related dispute with Apple (NASDAQ:AAPL) has removed a major overhang from over its shares. Following the deal, the company will get an up-front cash payment from Apple. Additionally, Apple will once again start selling Nokia’s digital health products from its retail and online stores.

Owing to these tailwinds, shares of Nokia have been performing well of late. The stock has gained 13.84% in the last three months, outperforming the Zacks categorized Wireless Equipment industry’s rise of 3.52% over the same period.

Zacks Rank & Key Picks

Nokia currently carries a Zacks Rank #2 (Buy). Other stocks worth considering in the broader Computer and Technology sector are Sierra Wireless, Inc. (NASDAQ:SWIR) and Ubiquiti Networks, Inc. (NASDAQ:UBNT) . Both carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Sierra Wireless and Ubiquiti Networks have gained over 7% and 2%, respectively, in the last three months.

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