Nokia Networks, the telecommunications arm of the Finnish technology company, is buying Eden Rock Communications, a maker of multivendor self-organizing networks (SON).
Financial terms of the deal were not disclosed, but according to Nokia, the SON segment is "one of the fastest growing and most important" within the mobile broadband industry.
Eden Rock is known for its Eden-NET SON technology, which is used within GSM, UMTS and LTE networks to improve peak network performance, network reliability and operational efficiencies. Nokia plans to incorporate Eden-NET into its own SON portfolio.
As a part of the acquisition process, Eden Rock will spin-off a new company with its spectrum sharing tools, technology and patents. Nokia said the technology bundle enables LTE networks to coexist in the same spectrum with government communications systems, radar systems, and external mobile networks.
"With this combination of capabilities, we will effectively address a key customer pain point - automated optimisation of heterogenous networks in a multivendor environment," said Peter Patomella, VP of CEM and OSS at Nokia Networks, in a statement.
Nokia has focused heavily on the network technology and equipment market since the sale of its devices unit to Microsoft last year. The company announced last month a merger with French telco equipment giant Aclatel-Lucent, valued at €15.6 billion. The joint company will be headquartered in Finland once the merger closes next year, although Alcatel-Lucent's French headquarters will become a center for security and 5G research.