Nokia today announced an agreement to acquire DiscoveryCom based in Huntsville, Alabama, US. DiscoveryCom provides solutions that enable communications service providers to rapidly install and maintain Broadband Digital Subscriber Line (DSL) services for fast Internet access. The acquisition will strengthen loop management and related competencies within Nokia's portfolio of Digital Subscriber Line (DSL) solutions and services.
The acquisition price is USD 220 million, payable in Nokia stock. The closing of the transaction is subject to customary closing conditions and is expected to occur in the third quarter of 2000.
DSL is a technology that enables fast Internet connections in a fixed telephone network via copper cables. Loop management is a fundamental requirement by DSL customers. It allows service providers to automate the service provisioning process and reduce operational costs. The need for loop management is further enhanced by regulatory requirements for line sharing, where the DSL service for fast Internet and the traditional telephone service share the same copper pair.
"The acquisition of DiscoveryCom further strengthens Nokia's broadband solution offering. During the last few years, Nokia has built a significant market position in this fast growing communications segment. We see great synergies between the two companies' solutions and competencies. Combined, they will have a great impact on our target of becoming the leading broadband access supplier, as DSL is quickly becoming the preferred access technology for copper networks", says Mr. Olli Oittinen, Senior Vice President, Broadband Systems, Nokia Networks.
"Nokia's acquisition of DiscoveryCom is a win-win situation for everyone involved," said Marty Roberson, President and CEO of DiscoveryCom. "DiscoveryCom's LoopMaster(tm) Total Loop Management System perfectly complements Nokia's existing DSLAM (Digital Subscriber Line Access Multiplexer) solutions. This powerful combination opens the floodgates for fast and profitable DSL deployment. With Nokia's global presence and its international sales force, we expect every DSL service provider to welcome this action with open arms. This will help Nokia to become the world leader in broadband technology solutions."
DiscoveryCom was founded in 1995. It is a technology company involved in the design, manufacture, and distribution of communications products that enable service providers to rapidly install and maintain broadband DSL services. The company offers a successful line of portable broadband test instruments that are used by major telephone companies and service providers worldwide. The new LoopMaster product line automates the qualification, provisioning, and management of local copper telephone circuits used to deliver broadband DSL services to subscribers.
The company currently employs approximately 50 people. After the acquisition, it will become a business unit within Nokia Networks and continue its operations in Huntsville. Mr. Marty Roberson, President and CEO of DiscoveryCom will continue heading the new business unit.
Nokia is paving the way to the Mobile Information Society with its innovative products and solutions. The company is the leading mobile phone supplier and a leading supplier of mobile, fixed and IP networks, related services as well as multimedia terminals. In 1999, Nokia's net sales totaled EUR 19.8 billion (USD 19.9 billion). Headquartered in Finland, Nokia is listed on the New York (NOK), Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges and employs more than 60 000 people.
A phone press conference will be held at 12:00 p.m. CST on Tuesday, August 8, 2000. To participate, see the call information below:
US Participant: 1-888-324-8143
International Participant: 212-547-0277
Password: Nokia
Host: Jim Bowman, Vice President - Corporate Communications, Nokia Americas
Instant Replay will be available following the call for 24 hours. To replay the conference call:
US Participant: 1-800-386-5111
International Participant: 402-220-9817
Password: Nokia
Host: Jim Bowman, Vice President - Corporate Communications, Nokia Americas
Further information:
Arja Suominen, Vice President, Communications
Nokia Networks
Tel. +358 9 5113 8195
Email nokia.networks@nokia.com
Megan Matthews, Senior Manager, Media Relations
Nokia Americas
Tel. +1 972 894 4267
www.nokia.com