Nokia, on Friday announced plans to acquire Gainspeed, a US-based start-up specializing in DAA (Distributed Access Architecture) solutions for the cable industry via its Virtual CCAP (Converged Cable Access Platform) product line. Gainspeed is widely regarded as the industry leader in DAA, which the cable industry has adopted as its next generation solution to address increasing capacity requirements.

Gainspeed's Virtual CCAP solution would strategically diversify Nokia's product portfolio for cable access customers and expand Nokia's footprint in this growing market. Upon the closing of the planned transaction, Gainspeed would become part of Nokia's Fixed Networks business group.

Virtual CCAP enables cable operators to meet growing customer demand for high-speed data services and IP video. With Virtual CCAP, cable operators can increase the capacity of their existing HFC (Hybrid Fiber Coax) infrastructure and rapidly deploy new services, while simultaneously reducing space and power requirements in the headend. At the same time, customers can cost-effectively migrate their networks to a software-driven, all-IP architecture. With the acquisition of Gainspeed, Nokia would have an extendible and flexible platform that can host the future innovations of the cable industry.

"We are very excited to have Gainspeed, the technology leader in its field, joining us. Cable is one of the fastest growing areas in our fixed networks business, and we are committed to delivering a complete solution set to cable operators. Gainspeed's Virtual CCAP perfectly complements our leading fiber access solutions for cable MSOs," said Federico Guillen, president of Nokia's Fixed Networks business group.

Gainspeed was founded in 2012 and is privately held. It is located in Sunnyvale, California, and employs approximately 70 people. The planned transaction is expected to close in Q3 2016, subject to customary closing conditions.