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Nokia to sell security business to Check Point

In a move that has been anticipated for some time, Nokia on Monday said it has an agreement in place to sell its security business. What did come as a surprise was the identity of the buyer: Check Point. The two companies have been working together for years, with Nokia deploying Check Point’s software on its own security appliances. The terms of the agreement were not disclosed, though Nokia said it expects the deal to be finalized by the end of March.

“As a pioneer in security appliances, the Nokia security appliance business has been an important strategic partner for Check Point and has helped us achieve early leadership in the security appliance market,” said Gil Shwed, Chairman and CEO at Check Point. “Adding Nokia’s security appliance portfolio into Check Point’s broad range of security solutions is the natural conclusion of our long collaboration, and will assure a smooth path forward for our mutual customers.”

Check Point and Nokia have long provided customers with a range of best-of-breed security solutions, proven in high-performance, mission critical environments.  Nokia’s security appliance business provides purpose-built security platforms optimized for Check Point Firewall, virtual private network (VPN) and unified threat management (UTM) software.

Nokia’s main focus for years has been its mobile handset business, and its security unit has always been something of an odd fit. It’s an enterprise business in the midst of a company that does most of its work selling consumer handsets. Now, with Check Point taking the reins, Nokia will be free to focus on that business, while Check Point can bring the appliances in-house and have an extra revenue stream.

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Um, no. This comes as a complete surprise to the industry. Nokia originally announced that a private equity firm was interested in acquiring their security appliance business. This is news. It could change the landscape of the industry. No, wait. It's Check Point. Never mind. -RS
Good point Richard. Bar wording on my part. I meant that the sale itself had been anticipated, not necessarily a sale to Check Point. I'll reword it.