Inseego has announced the acquisition of Nokia's Fixed Wireless Access consumer premises equipment operations, known as the FastMile brand. The deal is expected to double the company's revenue and expand its international presence. Nokia is effectively paying Inseego to take over the loss-making unit.
Last week, Inseego announced the purchase of Nokia's Fixed Wireless Access (FWA) consumer premises equipment operations, conducted under the FastMile brand. The move is described as transformative for Inseego (INSG), with projections that it will double the company's revenue and broaden its reach beyond the domestic market. Nokia is compensating Inseego for assuming control of the unit, which has been operating at a loss. This acquisition marks a new chapter for Inseego, presenting a high-risk, high-reward opportunity. Success in turning around the business could lead to a positive rerating of the stock by market participants, while failure might jeopardize the company's overall stability. An analyst at Seeking Alpha upgraded their rating on Inseego from 'Sell' to 'Hold' in light of the development.
