Nokia says it has signed a deal to sell most of its IP video business to Volaris Group, a Toronto-based software company. Volaris will use the assets to create Velocix, a new business unit with an old name positioned as a pure play streaming technology company. Terms of the deal, expected to close during the fourth quarter of this calendar year, were not disclosed.
Nokia will be a minority owner in Velocix and act as a global sales channel for the new company’s products, which will include caching and streaming products, origin and storage technology, and stream personalization software from Nokia. Velocix is the name of Nokia’s current media delivery line. Nokia will maintain certain elements of the IP video unit, including the integration business and its associated employees. The rest of the unit’s employees will transition to Volaris Group.
“We are excited to be part of the new company under the Velocix brand that set out to transform the video landscape back in 2002,” said Paul Larbey, head of the soon to be former IP Video Business at Nokia. “Through several acquisitions the name changed, but the purpose remains the same: to enable big changes in the video market, to make video more personal, and to enable a highly compelling entertainment experience for consumers on every screen."
Velocix will be headquartered in Cambridge, UK. Larbey will become Velocix CEO.
“We are eager to enter the media market and have been patiently waiting to find the best platform to do this. Velocix was originally acquired by Alcatel-Lucent in 2009 and in 2016, along with the Alcatel-Lucent acquisition, it was transferred to Nokia. We are pleased to be able to spin out Velocix and form a joint venture with Nokia at the same time,” said David Nyland, portfolio leader and president of Communications & Media portfolio at Volaris.
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