06 September 2009

Nokia Is Seeking Expansion Through
Acquisitions Of Small Technology Firms

Nokia is looking to increase its investment in the development of its Internet services, and plans to look for acquisitions of small privately-held companies with management in place and talented teams developing services that Nokia itself plans to offer in the future, the Reuters reported on Thursday.

Nokia has bought a number of the small companies particularly those that focus on location based services and user-generated content. With Plazes, OZ Communications, Cellity and other recent acquisitions Nokia is clearly trying to offer the best possible solution for connecting people through the location-based services, communities and social networks.

Internet is a fast-paced market segment where new companies and potential targets are often the brain children of deep expertise enthusiasts. During the start-up phases these deep enthusiasts create basic requirements, lay down enough code that a giant like Nokia can then take the technology and fold both technology and vision into their larger services

Their innovative technologies are another important elements for its web/service strategy under the Ovi brand and it will helps Nokia to accelerate its vision of bringing people and places closer together and to roll those services out faster !

"It is likely we will find small technology companies," Savander said to Reuters.

Nokia has revamped the services unit over the last year, selling some non-core businesses, but the company has stuck to two sales channels for mobile games -- in addition to its Ovi Store, it sells games through its specialised N-Gage service.

Savander said the success of many application stores was raising the question whether N-Gage was needed, but the answer up until now had been that it was.

Nokia says it has 55 million Internet services users, and the business created April-June revenues of 140 million euros ($200 million).