Key Takeaways
- • Nokia has agreed to sell its Enterprise Campus Edge (ECE) business, home to most of its private networks activity, to Munich-based private equity firm AURELIUS, with closing expected in the first half of 2027, subject to approvals; financial terms were not disclosed.
- • According to AURELIUS, ECE generates more than €170 million in annual sales, employs around 1,000 staff across Finland, Hungary, India and the US, and serves nearly 900 customers in manufacturing, mining, logistics, airports, ports and power generation.
- • The ECE business will be owned by AURELIUS's Fund IV and V, with the deal positioned as part of the firm's target of around six investments a year and on track for its 2026 goal.
- • Nokia retains a macro-sized private 4G/5G core network business for utilities, defense and railway markets, and is expected, though unconfirmed, to keep a licensing agreement with AURELIUS for private radios.
- • Analysts question the strategic logic, with SNS Telecom & Research forecasting private cellular infrastructure spending rising from $2.8 billion in 2026 to $6.6 billion by the end of 2029.
Summary
Nokia has agreed to sell its Enterprise Campus Edge (ECE) business to Munich-based private equity firm AURELIUS, exiting most of its private networks activity. The deal is expected to close in the first half of 2027, subject to approvals, and the financial terms have not been disclosed. Nokia said it will focus capital where it can differentiate and create long-term value, and that the new owner will give ECE greater independence, agility and dedicated strategic focus.
According to AURELIUS, ECE generates more than €170 million in annual sales and employs around 1,000 staff, with key operations in Finland, Hungary, India and the US. The business counts nearly 900 customers across manufacturing, mining, logistics, airports, ports and power generation. Its portfolio includes industrial devices, on-premises OT edge and micro-edge solutions, and software for industrial AI use cases. The deal includes the DAC and MXIE portfolios, plus devices and software, and ECE employees are expected to transfer with the business. Nokia will continue to sell macro-sized private 4G/5G core systems to utilities, defense and railway customers. Nokia listed its ECE and FWA units as discontinued operations in July; in its Q2 statement, the two combined contributed €66 million in revenue and diluted profitability by about €13 million.
AURELIUS, which has completed more than 300 transactions and holds 49 portfolio companies, has a record in complex carve-outs and tech distribution, including Exertis, Distrelec and AAH Pharmaceuticals. The ECE assets will be held by its Fund IV and Fund V, with Andrzej Cebrat describing ECE as a promising fit for AURELIUS Opportunities Fund V and its approach of acquiring global corporate carve-outs with improvement potential.
Analysts have questioned the move. SNS Telecom & Research projects private cellular infrastructure spending of $2.8 billion in 2026, rising to $6.6 billion by the end of 2029. Asad Khan, research director at SNS, called the decision certainly surprising given recent momentum in larger private 5G projects, and said it may make sense from a short-term profitability perspective but is harder to understand given the market's direction. Konstanty Owczarek, Nokia's chief corporate development officer, said the transaction gives ECE a strong foundation for its next growth phase as a standalone business.
According to AURELIUS, ECE generates more than €170 million in annual sales and employs around 1,000 staff, with key operations in Finland, Hungary, India and the US. The business counts nearly 900 customers across manufacturing, mining, logistics, airports, ports and power generation. Its portfolio includes industrial devices, on-premises OT edge and micro-edge solutions, and software for industrial AI use cases. The deal includes the DAC and MXIE portfolios, plus devices and software, and ECE employees are expected to transfer with the business. Nokia will continue to sell macro-sized private 4G/5G core systems to utilities, defense and railway customers. Nokia listed its ECE and FWA units as discontinued operations in July; in its Q2 statement, the two combined contributed €66 million in revenue and diluted profitability by about €13 million.
AURELIUS, which has completed more than 300 transactions and holds 49 portfolio companies, has a record in complex carve-outs and tech distribution, including Exertis, Distrelec and AAH Pharmaceuticals. The ECE assets will be held by its Fund IV and Fund V, with Andrzej Cebrat describing ECE as a promising fit for AURELIUS Opportunities Fund V and its approach of acquiring global corporate carve-outs with improvement potential.
Analysts have questioned the move. SNS Telecom & Research projects private cellular infrastructure spending of $2.8 billion in 2026, rising to $6.6 billion by the end of 2029. Asad Khan, research director at SNS, called the decision certainly surprising given recent momentum in larger private 5G projects, and said it may make sense from a short-term profitability perspective but is harder to understand given the market's direction. Konstanty Owczarek, Nokia's chief corporate development officer, said the transaction gives ECE a strong foundation for its next growth phase as a standalone business.
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