Swedish mobile network equipment maker to pay $1.15bn in an all cash deal
Sweden-based mobile network equipment maker Ericsson has confirmed that it would pay $1.15bn in an all cash deal to acquire US communications software developer Telcordia.
Ericsson said that it has reached an agreement with Providence Equity Partners, LLC and Warburg Pincus to acquire 100 percent of the shares of Telcordia
Telcordia is a company with presence in the development of mobile, broadband and enterprise communications software and services. It is headquartered in Piscataway, New Jersey, and employs more than 2,600 people.
Ericsson president and CEO Hans Vestberg said Telcordia brings very skilled people and knowledge, a large business in North America and other markets, as well as a good multi vendor product portfolio.
Vestberg said, "We have global presence and scale, global services capabilities and superior knowledge about networks and network performance, as well as an already established position in the OSS/BSS space. It is a perfect fit."
OSS or Operations Support Systems are computer systems used by telecommunications service providers, while BSS or Business Support Systems refers to business systems dealing with customers.
Telcordia president and CEO Mark Greenquist said, "The combination of Ericsson's global leadership position and Telcordia's long-standing expertise in solving the most complex communications challenges will benefit customers through new services and expanded capabilities."
"Together, we will lead the way into a new era of converged communications, while expanding our offerings to manage the world's most dynamic networks. Ericsson's acquisition of Telcordia signals their commitment to their future strategy to capitalise on the growth opportunities in the OSS/BSS communications industry. We appreciate the significant value added by Providence and Warburg Pincus over the last six years."
Providence and Warburg said, "We are confident that the company will benefit from becoming part of Ericsson, a clear global leader in providing technology and services to telecom operators."
The deal is subject to regulatory approvals and is expected to be accretive to Ericsson earnings per share within 12 months after closing.
No comments:
Post a Comment