Bhaskar is taking a page from his Oracle playbook in his new role at Nokia.
Our take on the deal: It is good for Comptel and its investors. Nokia will give it channels to market that it can’t get to today. Nokia gains capabilities it does not have today and technology that complements its activities in the NFV domain with Cloudband. The integration will be challenging because of the massive software portfolio under Nokia. Pressure will increase on Comptel to generate a larger share of the overall revenue in the software business – it accounts for less than 10% today in our estimates. Also the landscape is littered with failed acquisitions of software companies going into large infrastructure suppliers. Can Nokia avoid the pitfalls that have plagued others in the space? Nokia is paying a premium but its not over the top from past deals that we have tracked.
- Offer stands at 347 million euros
- Expected to close Q2/2017
- Comptel generating revenue of 105 million euros
- Comptel generating approximately profit of 8 million euros
- The deal if closed represents a price to sales multiple of 3.5
Comptel is a purveyor of software solutions in the mediation, charging, policy control, and orchestration domains. Comptel HQ is located in Helsinki and it has offices in 20 locations. Comptel acquired EDB Telecom in 2005 and Axiom Systems in 2008. Comptel employs about 750 people.