Nokia firms up its fixed portfolio with optical M&A

Following a stellar year in the optical equipment market, Nokia has splashed some (unspecified) cash on Elenion Technologies, a US-based developer of silicon photonics technology. (See Nokia buys Elenion to target new markets with optical tech.)

"As a world-class provider of silicon photonics solutions, advanced packaging and custom design services, Elenion provides a strong strategic fit for Nokia," noted Nokia's head of optical networking, San Bucci, in the press release announcing the deal. "Its solutions can be readily integrated into Nokia's product offerings and address multiple high growth segments including 5G, cloud and data center networking."

The acquisition is expected to close before the end of March.

The move will add to Nokia's optical toolset at a time when it is experiencing significant growth. In 2019, the vendor's Optical Networks division grew its revenues year-on-year by 9% to €1.75 billion ($1.9 billion). The company noted in its annual results that the "growth in Optical Networks was primarily due to the timing of completions and acceptances of certain projects, with strong growth in Europe and North America."

Nokia's fixed access division did not fair as well, though: its revenues dipped 5% year-on-year in 2019 to €1.88 billion ($2 billion).

For more on the company's 2019 financials, see Nokia sees light at end of 5G tunnel.

— Ray Le Maistre, Editor-in-Chief, Light Reading, special to Broadband World News