Nokia agrees with Volaris Group on sale of IP Video business and creation of Velocix, a pure play streaming technology company

Press Release

• Nokia and Volaris Group Inc, a Toronto-based software company, have entered into an agreement on the sale and transfer of the majority of Nokia's IP Video business
• A substantial part of Nokia's video product portfolio and employees are planned to move to Velocix, a new independent pure play streaming technology company in Volaris' Communications & Media portfolio

The transitioning team will continue to manage and develop the transferring business and support existing customers as well as to drive the growth strategy in Velocix

Under the agreed terms, Nokia becomes a minority shareholder and a global sales channel partner of Velocix

13 September, 2018

Espoo, Finland - Nokia today announced plans to divest its IP Video business to Volaris Group ("Volaris"), 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. Financial details are not being disclosed.

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.

David Nyland, Portfolio Leader and President, Communications & Media at Volaris, said: "Volaris is truly excited by this pending acquisition of Nokia's market-leading video streaming portfolio. This planned transaction marks our first investment in the highly dynamic media technology sector and we look forward to using it as a springboard for growth."

Paul Larbey, head of the IP Video Business at Nokia, said: "We are excited to be part of the new company under the Velocix brand that set out to transform the video landscape back in 2002. Through several acquisitions the name changed, but the purpose remains the same: to enable big changes in the video market, to make video more personal and to enable a highly compelling entertainment experience for consumers on every screen."