Nokia struck a deal to sell its device and service management platform businesses to Lumine Group for up to €185 million ($203.1 million), a move that would provide a needed boost to its bottom line.

The two companies stated the agreement includes a contingent consideration of up to €35 million based on the performance of those businesses during the first year following the close of the deal.

About 500 Nokia device management and service management platform employees are expected to transfer over to Lumine Group as part of the agreement.

Lumine Group intends to operate both businesses as a standalone entity, to be called Motive.

Lumine Group acquires, manages, and builds industry-specific software, focused in the telecom and media space.

The deal is slated to close in Q1 2024, subject to terms, conditions and consultations with works council or other employee representative bodies where they are required by law.

Nokia noted the move marked further progress for its “strategy to actively manage its Cloud and Network Services (CNS) business group portfolio in order to invest in other strategic areas and enhance technology leadership”.

The deal follows Nokia announcements earlier this year to sell its VitalQIP products to Cygna Labs Corp and to shift its cloud infrastructure and container operations to Red Hat.

The Finnish vendor announced in October that 14,000 jobs would be cut as part of a cost reduction programme.

In December, Nokia lowered its long-term profitability target due to market conditions impacting its mobile networks business.