Inseego completes purchase of Nokia's fixed wireless access device business
Inseego has closed its deal for Nokia's FWA customer premises equipment unit, a move it expects to roughly double its revenue.
US broadband vendor Inseego has completed its acquisition of Nokia's fixed wireless access (FWA) customer premises equipment business, a deal it expects will roughly double its revenue, according to TahawulTech, citing Mobile World Live.
The purchase adds indoor, outdoor and mmWave FWA products to Inseego's wireless broadband range. The company said it now serves operators across Europe, the Middle East, Asia, Oceania and the Americas, covering both consumer and business connectivity.
To support that wider footprint, Inseego has set up an international headquarters in Amsterdam and a development centre in Athens, expanded its presence in Bangalore, and added sales and technical staff in its new markets. Chief executive Juho Sarvikas said the company now has "the scale, technology, and global reach" to support carriers across business, residential and mobile use cases.
Terms of the deal
The transaction was announced in April. Under its terms Nokia receives about 1.9 million common shares, an 11% stake in Inseego, along with warrants to buy up to 800,000 more shares at an exercise price of $4.26 each.
Nokia is also due to pay $10 million in cash by 15 October. The report says the payment supports engineering work over the coming year on interoperability between Inseego's device operating system and cloud platform and certain Nokia technology ecosystems. Nokia will provide transition support and refer new FWA opportunities to Inseego.
Around 250 people from the acquired business will support Inseego's engineering, product management, supply chain, sourcing and customer support. That number includes staff joining Inseego as well as Nokia personnel working under a transition services agreement.