Nokia offloads security business to Check Point

Nokia finds buyer for its security appliance business.

Nokia has finally found a buyer for its profitable security appliance business. From the first quarter of 2009, the division will belong to partner Check Point, the companies have announced.

The size of the deal has not been revealed, but Check Point indicated that the acquisition of the California-based group will add US$100 million to the company's revenues for 2009 and will be conducted for cash.

The sell-off is not a surprise, even if Check Point's interest hardened late in the day. Nokia's line of remote access and firewall security hardware was built around the Israeli company's software at its core and is considered to have a good reputation. The deal gives Check Point much needed market share.

"For over 10 years, the security appliance business within Nokia has held a leading position in the security appliance market. Our IP security platforms have developed a well-deserved reputation as the premier platform on which to deploy Check Point's leading security software," said Nokia's Tom Furlong.

"This business fits naturally with Check Point, and the combination will provide a great path forward for the thousands of customers who depend on Nokia security solutions today."

"Adding Nokia's security appliance portfolio into Check Point's broad range of security solutions is the natural conclusion of our long collaboration, and will assure a smooth path forward for our mutual customers," said Check Point CEO, Gil Schwed.

No mention was made of how much of the new division will retained under Check Point's control, although given that the Israeli company has a US presence, there is bound to be some overlap.

"I hope that we will also find a way to integrate most of the Nokia workforce into the company," Shwed was reported as saying at a news conference.

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John E. Dunn

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