Nokia has agreed to sell its IP video business to Volaris Group, a Toronto-based software company, leading to the creation of a new pure play streaming technology company. The financial details have not been disclosed.

Nokia’s video product portfolio – including its caching and streaming products, origin and store technology, and stream personalisation software – will move to Volaris. Meanwhile, the majority of Nokia’s IP video business employees will transition to the newly-formed company called ‘Velocix’.

“We are excited to be part of the new company under the Velocix brand that set out to transform the video landscape back in 2002,” said Paul Larbey, head of the IP video business at Nokia. “Through several acquisitions the name changed, but the purpose remains the same: to enable big changes in the video market, to make video more personal and to enable a highly compelling entertainment experience for consumers on every screen.”

The Finnish telecoms company will remain a minority shareholder in the new company and become a global channel partner to it, enabling Nokia to sell and support Velocix solutions. Nokia will retain elements of its video unit including integration business and associated employees. The deal is expected to close during Q4 2018.

“Video plays a very important role in our customers’ strategies, both as it relates to their services and the demands it places on their networks,” said Basil Alwan, co-president of IP/optical networks at Nokia. “Meanwhile, the technology behind video – including user experience, content packaging and delivery – continues to go through meaningful shifts. Our new partnership enables us to adapt and grow in this important period; together we can better navigate change while providing continuity for our customers.”