Nokia said it has purchased virtual CCAP start-up Gainspeed for an undisclosed sum.
Sunnyvale, Calif.-based Gainspeed and its virtual converged cable access platform (CCAP) product line will be used by Nokia to bolster the cable operator business of Nokia Networks, the broadband infrastructure half of the company.
Gainspeed was formed in 2012 and has been backed to the tune of $60.77 million by investors including Andreessen Horowitz, Juniper Networks and Shasta Ventures through four rounds of funding. Gainspeed will operate under Nokia's Fixed Networks unit, with division president Federico Guillen overseeing the acquisition. The employment fate of Gainspeed's 70 employees remains unclear.
The deal is projected to close in the third quarter of this year.
"Cable is one of the fastest growing areas in our fixed networks business, and we are committed to delivering a complete solution set to cable operators," Guillen said in a statement. "Gainspeed's Virtual CCAP perfectly complements our leading fiber access solutions for cable MSOs."
Nokia sees virtual CCAP as a means of enabling cable operators to meet customer demand for high-speed services, allowing them to increase capacity of existing hybrid fiber coaxial (HFC) networks and rapidly deploy new services while simultaneously reducing space and power requirements in headend operations. The technology also allows MSOs to efficiently transition their networks to a software-driven, all-IP architecture.
For Nokia, the Gainspeed acquisition follows the $16 billion purchase of France's Alcatel-Lucent last year.
For more:
- read this Nokia press release
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