Nokia (NOK) Stock Rising on Eden Rock Purchase

NEW YORK (TheStreet) -- Shares of Nokia Corp. (NOK) are higher by 2.37% to $7.35 in late morning trading on Wednesday, after the Finnish tech device company said it is acquiring the U.S.-based company Eden Rock Communications for an undisclosed amount in order to boost its multivendor SON radio optimization capabilities.

The company said the purchase "reaffirms its vision" of becoming the "vendor of choice" in this sector.

"The size of the optimization and SON market is expected to exceed EUR 5 billion globally by 2018. With this combination of capabilities, we will effectively address a key customer pain point - automated optimization of heterogeneous networks in a multivendor environment," Nokia Networks VP, CEM and OSS Peter Patomella said in a statement.

"By combining our products into one, we will accelerate the delivery of a compelling solution for this problem and provide best-in-class network performance and customer experience," Patomella added.

The transaction is expected to close during the 2015 third quarter.

Separately, TheStreet Ratings team rates NOKIA CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NOKIA CORP (NOK) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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