Nokia Corp. to purchase Ramp Networks Inc. for 6.92 times revenue, The

Weekly Corporate Growth Report, Jan 8, 2001

The Deal: The Nokia Corp. has agreed to purchase Ramp Networks Inc. for $126 million. The acquisition will help Nokia increase sales to companies seeking ways to conduct secure transactions over the Internet.

Discussion: Ramp Networks Inc.'s WebRamp platform is a software-based routing and bridging device that lets users to share the same Internet connection using analog phone lines, ISDN, digital subscriber lines or cable modems. WebRamp uses the company's Connection Optimized Link Technology, which gives users faster access to the Internet through analog modems and phone lines than a single analog connection would offer. Customers include small and home offices and remote offices of large companies. Distributors Ingram Micro and Tech Data account for nearly 45 percent of sales.

The Nokia Corp. is the world's No. I seller in the mobile handset market, but it is aiming for the top of the nascent mobile Internet market. Its products are divided among three divisions: mobile phones, accounting for 66 percent of sales, wireless and Internet protocol infrastructure networks and other operations such as TV set-top boxes, Internet software and services, home networking and mobile displays. One of Europe's largest companies by market capitalization, Nokia is focusing on high-speed data connections through thirdgeneration wireless systems, digital subscriber lines and interactive television networks.