Nokia announced on 7th May that it has acquired software maker SpaceTime Insight, which is being considered as an expansion to Nokia’s Internet of Things portfolio. The terms and condition of this recent acquisition were not disclosed by Nokia. The acquired company SpaceTime Insight provides predictive analytics that are based upon machine learning algorithms.
During an Interview, the president of Nokia software, Bhaskar Gorti said that the terms of the acquisition are not being disclosed. The Spacetime raised $50 million and $65 million in funding and according to PtichBooks, its last valuation was around $103 million in 2016.
After the acquisition, the CEO of SpaceTime, Rob Schilling will become the head of the new IoT of Nokia.
According to the current status of Nokia, it’s IoT is a very small part of its overall profit as €23 billion revenue of Nokia during last year, the software division accounts for €1.6 billion and therefore the IoT contribution to the overall profit of Nokia will fit somewhere between that €1.6 billion.
The acquired company SpaceTIme is based in San Mateo, California with different offices in the UK, US, Canada, India, and Japan. The company provides machine learning powered analytics and IoT applications for some of the largest transportation, energy and utility organizations like FedEx, Entergy, etc. The machine learning models and other advance analytics are specially designed for asset intensive industries for optimizing related operations and predicting assets health with a high degree of accuracy.
This acquisition will help Nokia to strengthen its IoT software portfolio and IoT analytical capabilities. Moreover, it will also help Nokia to enhance its development of IoT offering for delivering great quality IoT applications for all its customers.
With the help of this acquisition, Nokia will also be able deliver new and advance applications for key vertical markets, which will include logistic, transportation and other sectors.
In today’s era, a lot of companies are investing in the IoT which is part of their strategy to fight against the offset declines in more legacy business lines and slower growth in the mobile sector.
The acquisition of SpaceTime is unique because it will not only bring better Artificial Intelligence access to the company, but it will bring one more profit for Nokia which is the customers. As mentioned earlier, SpaceTime has some very big names like FedEx and Entergy in its customer list therefore even after the acquisition, they will remain as the customer of SpaceTime and will give new business opportunities for Nokia.
The last week demotivating announcement of Nokia to sell off its digital health business, after failing to make it a part of business, has now been recovered by this new announcement of acquisition which will bring both giant customers and better technology to Nokia.