Nokia Acquires Vienna Systems Corporation; Strengthens expertise in IP telephony
NEW YORK--(BUSINESS WIRE)Nokia announced today that it
has signed a definitive agreement to acquire
Vienna Systems, a privately held Internet
Protocol (IP) telephony company, based in
Kanata, Ontario, Canada, for a price of
approximately USD 90 million.
A recognized leader in the global IP
telephony market, Vienna Systems designs
and manufactures hardware and software
products for the distribution of voice, fax and
video communication over IP networks
including intranets and the public Internet.
Vienna Systems' customers range from
alternate telecommunications service
providers to multisite medium and large
enterprises. The company's products will
continue to be available through existing
distribution channels, including a
collaborative sales and marketing relationship
with Newbridge Networks.
Pekka Ala-Pietila, Nokia's Executive Vice
President and deputy to the Chief Executive
Officer, said that while low-cost voice and
fax services presently are key drivers in the
IP telephony market, Nokia believes that IP
telephony offers considerable growth
potential for new applications to service
providers.
"Nokia and Vienna Systems share similar
visions of two rapidly developing trends - the
ubiquitous use of IP as a universal
communications platform and the increasing
use of wireless networks for transmitting
data, video and voice, " said Mr. Ala-Pietila.
"Time to market is crucial to success in this
business. Vienna Systems' prominent position
in IP telephony provides Nokia with additional
technical expertise and access to leading
customers in this rapidly developing market."
T. Kent Elliott, President and Chief Executive
Officer of Vienna Systems, said that Nokia's
strong brand identity and customer base will
be a springboard for his company. "Nokia's
global strength combined with our broad
product line and intellectual capital makes a
powerful combination," Mr Elliott said.
"Together, we will move rapidly to deliver
new leading-edge services to our
customers."
Vienna Systems was founded in 1996 and
currently employs 180 people, with research
and development centers in Kanata;
Richmond, British Columbia; and Ithaca, New
York, and sales offices in the United States,
Canada, Europe and Japan.
Nokia is the world's leading mobile phone
supplier and a leading supplier of mobile and
fixed telecom networks including related
customer services. Nokia also supplies
solutions and products for fixed and wireless
datacom, as well as multimedia terminals and
computer monitors. In 1997, net sales
totaled FIM 52.6 billion ($ 9.8 billion).
Headquartered in Finland, Nokia is listed on
five European Stock Exchanges and on the
New York Stock Exchange (NOK.A), has sales
in 130 countries and employs more than
42,000 people worldwide.
[Copyright 1998, Business Wire] |
