Nokia acquires Gainspeed, a U.S. startup specializing in improving cable network capacity

Nokia has announced that it will acquire Gainspeed, a U.S. startup that’s setting out to “redefine” how cable networks are built. Terms of the deal were not disclosed.

Founded in 2012 out of Sunnydale, California, Gainspeed specializes in Distributed Access Architecture (DAA) services for the cable industry. This comes as the industry responds to the growing need for more network capacity brought on by the rise of bandwidth-intensive media such as IP video.

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Since offloading its Here mapping unit and shifting its mobile phone division to Microsoft, Nokia has consisted of two core divisions — Nokia Networks, a broadband network infrastructure business, and Nokia Technologies, a wing that aims to keep the brand alive in the consumer realm. This includes its virtual reality (VR) Ozo camera, its recent acquisition of digital health startup Withings, as well as its imminent return to mobile phones through a range of brand and licensing arrangements.

With this aquisition, Nokia has given its network technology arm a major boost, as Gainspeed is considered one of the leaders in DAA. This deal adds to Nokia’s other recent acquisition  — it bought France’s Alcatel-Lucent for more than $16 billion last year to build the “next-generation network technology and services.”

“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,” said Federico Guillen, president of Nokia’s Fixed Networks business group, in a press release.

Once the Gainspeed acquisition is complete, expected in Q3 2016, the company will become part of Nokia’s Fixed Networks group.