Nokia Networks primed to purchase Eden Rock Communications

The network arm of the Finnish phone company Nokia is now closing on a deal to formally purchase Eden Rock Communications, a known maker of self-organizing networks, otherwise known as SONs.

Eden Rock Communications is responsible for making systems that enable wireless LTE networks to better utilize airwaves to facilitate faster communication, according to the Puget Sound Business Journal. Eden Rock Communications core competencies also help with network reliability and improving overall efficiency.

The financial terms of the deal have yet to be made publicly available, but Nokia has commented on the significance of the acquisition, saying the SON segment is especially crucial within the mobile broadband industry.

With the deal in place, Eden Rock Communications is now expected to spin-off a separate company which will also feature its tools, technology, and patents.

The new technology bundle Nokia has acquired from Eden Rock Communications will allow LTE networks to function well even within the same spectrum together with external mobile networks, government-based communication systems, and even radar systems, according to ZD Net.

Nokia Networks' VP of CEM and OSS Peter Patomella also said their latest acquisition is expected to "address a key customer pay point." Patomella went on to say that the acquisition of Eden Rock Communications could be worth as much as 8 million euros by the year 2018.

The deal between Nokia Networks and Eden Rock Communications is expected to be completed by the third quarter of 2015, according to Reuters.

Nokia has refocused its energy on the network tech and equipment market after selling off their handset business to Microsoft back in 2014.

As part of the Finnish company's new business strategy, Nokia also merged with telecom equipment company Alacatel-Lucent back in April. The deal between the two companies is valued at around 15.6 billion euros.