Nokia announced plans to divest its IP Video business to Volaris Group, a Toronto-based software company.
Nokia's video product portfolio - including its caching and streaming products, origin and storage technology, and stream personalization software - is expected to move to Volaris and launch a new pure play streaming technology company, Velocix, operating as an independent business within Volaris Group's Communications & Media portfolio.
Nokia will remain a minority shareholder in the new entity and continue to play a critical role in supporting the company's growth. The planned deal is expected to close during Q4 2018, subject to customary closing conditions.
The majority of Nokia's IP Video business employees are expected to transition to Velocix. Nokia will become a Global Channel Partner for Velocix, enabling it to continue to sell and support Velocix video solutions. Nokia will maintain certain elements of its video unit, including integration business and associated employees, to provide continued support for existing customers.