Nokia (NYSE:NOK) has announced its acquisition of the privately-held Fenix Group, a move aimed at fortifying its wireless capabilities within the defense segment.

Hailing from Chantilly, Va., Fenix, a portfolio company of Enlightenment Capital, specializes in tactical 3rd Generation Partnership Project (3GPP) communications solutions for the defense sector. The company’s key products include the Banshee product family.

Nokia indicated that Fenix’s systems are designed to deliver high-speed, low-latency data connections to multiple devices and users concurrently, making them tailor-made for a variety of military applications.

Expressing his excitement, Tommi Uitto, President of Mobile Networks at Nokia, commented, “The acquisition of Fenix Group is an important milestone in our strategy to expand our presence in the defense business.”

In a separate development, Nokia has adjusted down its 2026 comparable operating margin target to a minimum of 13%, down from the previous minimum of 14%, attributing the revision to persistent challenges in the 5G market. Furthermore, the company’s stock recently plummeted to a 3.5-year low following its loss of AT&T’s (T) Open RAN contract worth up to $14 billion to Swedish supplier Ericsson (ERIC).

On another front, Nokia, in collaboration with Deutsche Telekom, has initiated the deployment of a multi-vendor Open RAN network in Germany alongside Fujitsu.