Nokia announced Tuesday it has signed a definitive agreement to sell its Enterprise Campus Edge business to private equity firm AURELIUS, marking another step in the Finnish telecommunications giant's ongoing portfolio restructuring as it focuses on core network infrastructure.

The transaction, expected to close in the first half of 2027 pending regulatory approvals and customary closing conditions, represents a strategic retreat from the enterprise networking space where Nokia has struggled to compete against Cisco, Juniper Networks, and emerging software-defined networking providers.

Financial terms of the deal were not disclosed in Nokia's Tuesday morning announcement, though Reuters reported the divestiture aligns with Nokia's broader strategy to concentrate resources on 5G infrastructure, cloud-native network software, and other areas where the company maintains stronger competitive positioning.

Enterprise Campus Edge Background

Nokia's Enterprise Campus Edge business provides networking equipment and software for corporate campuses, university networks, and other large-scale enterprise deployments. The unit includes switching, routing, and wireless access point technologies designed for indoor and outdoor enterprise environments.

While the division generated steady revenue, it operated in an intensely competitive market dominated by Cisco's decades-long enterprise relationships and challenged by newer cloud-managed networking platforms like Meraki and Aruba. Nokia has found it increasingly difficult to justify the R&D investment required to keep the product line competitive against these entrenched players.

AURELIUS, a European private equity firm specializing in corporate carve-outs and turnarounds, sees opportunity in the Enterprise Campus Edge assets. The firm has a track record of acquiring non-core divisions from larger technology companies and either growing them as standalone businesses or folding them into existing portfolio companies.

Nokia's Strategic Pivot

Nokia CEO Pekka Lundmark has repeatedly signaled the company's intention to streamline its portfolio since taking the helm in 2020. The Enterprise Campus Edge sale follows several other divestitures, including Nokia's exit from the submarine cable business and its scaling back of legacy wireline products.

The company is betting its future on 5G radio access network equipment, mobile core software, and cloud-native network functions—areas where Nokia competes primarily with Ericsson and Huawei (in markets where Chinese vendors remain acceptable). These markets offer stronger margins and growth potential than the commoditized enterprise switching and routing space.

Nokia's shares have underperformed competitors over the past two years as investors questioned the pace of its 5G deployments and market share gains. Management hopes portfolio rationalization will improve profitability metrics and free up capital for investment in higher-growth opportunities.

The Enterprise Campus Edge divestiture will result in job transfers to AURELIUS, though neither company disclosed employee headcount or planned restructuring. Nokia emphasized in its announcement that the sale "supports its strategy to focus on the most attractive opportunities in network infrastructure."

AURELIUS did not immediately comment on its plans for the acquired business unit, though the firm typically either invests to grow acquired assets organically or pursues bolt-on acquisitions to build scale. The private equity buyer may also explore public markets or sale to a strategic acquirer once it has stabilized and optimized the Enterprise Campus Edge operations.

Analysts at Jefferies noted the deal reduces Nokia's exposure to mature enterprise markets while allowing management to concentrate on 5G infrastructure, where quarterly results have shown improving momentum. The sale is expected to close by mid-2027, giving AURELIUS time to secure financing and complete regulatory filings in relevant jurisdictions.