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Nokia to Enrich Mapping Unit with Medio Systems Buy

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Nokia Corporation (NOK) has agreed to purchase U.S. analytics company, Medio Systems in a bid to strengthen its mapping division, HERE. The deal is expected to be sealed by the end of next month. However, financial details of the deal were not disclosed by the company.

Medio – a Seattle-based company founded in 2004 with approximately 70 employees, is an innovator in the developing field of real-time predictive analytics. Medio Systems’ predictive analytics will help Nokia’s Here to deliver modified maps and services using analytical data.

Once complete, the acquisition will provide Nokia users with maps and services tailored as per their necessities using Medio’s predictive technology. Users will be able to get vital information such as prompt restaurant recommendations; route information based on weather conditions and driving patterns, or customized offerings for business enterprises.

Recently, Nokia acquired Mesaplexx, a leading Australian radio frequency (RF) filter technology developer, in an attempt to boost the RF capabilities of its base stations. The newly acquired technology will be integrated into Nokia’s flagship Flexi range of base stations.

Nokia currently has a Zacks Rank #2 (Buy). Continuous contract wins, aggressive 4G LTE network deployment across China as well as higher investments in network restructuring by emerging nations may bolster top-line growth for Nokia. In addition, increasing popularity of HERE mapping propelled by a strong automobile industry is likely to drive Nokia’s margins and revenues. In another development, Nokia divested its handset device business to Microsoft Corporation (MSFT) for $7.2 billion. The company plans to use the proceeds to pay dividends, buy back shares and clear debts.

Other Stocks to Consider

Other well-placed stocks worth considering in this sector are Polycom, Inc. (PLCM) and Comtech Telecommunications Corp. (CMTL). Both the stocks sport a Zacks Rank #1 (Strong Buy).

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