Nokia has acquired SpaceTime Insight, an IoT startup from California that uses machine learning algorithms to provide predictive analytics.
Deal value was not disclosed, but SpaceTime has raised between $50-$65 million in funding from backers including E.ON, Novus Energy Partners, and Zouk Capital. Notably, SpaceTime CEO Rob Schilling will become the new head of Nokia’s IoT unit, which currently is a small part of the overall company. The deal suggests that Nokia sees the Internet of Things as a viable contender as it searches for its next big growth area.
“Adding SpaceTime to Nokia Software is a strong step forward in our strategy, and will help us deliver a new class of intelligent solutions to meet the demands of an increasingly interconnected world,” Bhaskar Gorti, president of Nokia Software, said in a statement.
Less than a week prior to the deal, Nokia announced it is selling its health business after failing to develop this into a thriving offshoot.
“In its entirety, our Digital Health business has struggled to scale and meet its growth expectations. Currently, we don’t see a path for it to become a meaningful part of a company as large as Nokia,” read a memo from Nokia’s chief strategy officer Kathrin Buvac.
Nokia acquired the core of what is now its Digital health business in 2016 for €170 million, and announced that it had invested into the unit as recently as February 2017.
Nokia expects the Spacetime Insight acquisition to impact its IoT application roadmap within 18 to 24 months, meaning the new addition will be under pressure to perform from day one. The swift rise and fall of the health unit suggests that the Nokia environment is strictly “sink or swim”, meaning it’s not hard to predict what will happen to the new addition if it doesn’t perform as expected.
About Acuity Advisors
We know technology – that’s why we’re the industry’s trusted M&A advisor. Our partners are senior players in tech and M&A: skilled at getting to the heart of a technology business, understanding what will attract buyers, and building long-lasting relationships. We have an unrivalled understanding of the industry’s complexities and personalities – our track record and client feedback are compelling evidence of that. We’re an international firm – most of our deals are cross-border, from offices in London, Munich, Shanghai and Silicon Valley – but we’re grounded in our approach. We move quickly when it’s needed, and we’re around for the long haul when patience is a virtue. We’ve maintained a very high success rate across hundreds of deals while keeping our focus on doing what’s right for our clients. From first meeting to successful exit, we earn the trust that clients and investors put in us. Learn more here.
© 2018 Acuity Advisors Limited
A conversation is never wasted. We’re confident that we can give you all the help you need, but we’ll tell you if we think there’s a better option for you.Get in Touch