July 25, 2022
Nokia might sell its managed services business. The telecommunications/5G company is working with advisers to gauge interest, according to Bloomberg, which recently reported that private equity firms may have interest in a potential deal.
Nokia’s managed services business nests in its cloud and network services division. The business offers network maintenance and data management services to communication service providers (CSPs). This generates about $510 million in annual revenue.
Shares in Nokia rose as much as 2.3% on Friday, and followed that on Monday, up a fraction of a percentage point.
Nokia’s Pekka Lundmark
Pekka Lundmark, Nokia’s chief executive officer, has been working to boost the company since mid-2020. His focus? Restructuring and adding resources to product development. He recently stated that Nokia has moved into the “accelerate phase” of this strategy, all with the goal of bolstering growth and margin expansion.
While there is no guarantee that the managed services business unit will be sold, the company recently reported better than-expected earnings. It also said that it’s on pace to meet full-year guidance amid strong demand for 5G gear, Bloomberg reported.
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