Nokia to sell Velocix video streaming business to Volaris

Nokia will sell its Velocix IP Video business to Volaris Group , a Toronto-based software company.

Nokia's Veloxic video product portfolio includes caching and streaming products, origin and storage technology, and stream personalization software.

Volaris intends to use these assets to launch a new pure play streaming technology company called Velocix, operating as an independent business within Volaris Group's Communications & Media portfolio.

Nokia will remain a minority shareholder in the new entity and will become a channel partner. The majority of Nokia's IP Video business employees are expected to transition to Velocix. Financial terms were not disclosed.

Nokia said it 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."

Basil Alwan, Co-President of IP/Optical Networks at Nokia said: "Video plays a very important role in our customers' strategies, both as it relates to their services and the demands it places on their networks. Meanwhile, the technology behind video - including user experience, content packaging and delivery - continues to go through meaningful shifts. Our new partnership enables us to adapt and grow in this important period; together we can better navigate change while providing continuity for our customers."