|
|
 |
 |
|
|
|
|
Nokia Acquires Vienna Systems Corporation
December 18, 1998
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-Pietilä, 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-Pietilä. "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 (USD 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 world-wide.
Contact information:
Liisa Nyyssönen
Director, Corporate Communications
Nokia Tel. +358 10 505 5760
Jim Bowman
Vice President, Communications
Nokia Inc.
Tel. +1 972 894 4573
Dan MacDonald
Vice President -Marketing
Vienna Systems
Tel. +1 613 591 3219
| |
