The Finnish telecommunications company said the acquisition would help Nokia gain market share in network implementation.
Shares of Nokia are up 0.59% to $7.66 in mid-morning trading on Wednesday.
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Nokia shares surged after the network equipment maker said it was "cautiously optimistic" for the full year even as it posted a slowing in first quarter sales.
Rising wages and a push to spur consumption have made China less attractive as a production site. Manufacturers are looking South and East as a result, as investors should note.