Acquisition of Nortel's stake of LG-Nortel completed
(Thomson Reuters ONE) -
· LG-Ericsson will be one of the major telecom players in Korea
· Purchase price of USD 242 million on a cash and debt free basis
· Accretive to Ericsson's earnings within a year
Ericsson (NASDAQ:ERIC) has completed the acquisition of Nortel's majority
shareholding (50%+1 share) in LG-Nortel, the joint venture of LG Electronics and
Nortel Networks. Today's closing follows the announcement on April 21 that
Ericsson had entered into a share purchase agreement for this stake.
"The completion of this acquisition significantly expands our position in Korea
and shows our commitment to the market," said Mats H. Olsson, President of
Ericsson China and North East Asia. "The skill and experience from the LG-Nortel
employees will be key to continue to provide leading technology and services to
our customers."
Olsson highlighted the importance of the Korean market as it is one of the 10
largest telecom markets in the world with advanced end-user demand for new
services.
The joint venture was established in 2005 through the contribution by LG
Electronics of its telecommunications systems business and by Nortel of its
Korean distribution business. The focus of the joint venture has been to develop
and market large scale telecommunications systems such as WCDMA, CDMA and LTE
for telecom service providers in Korea as well as enterprise products and
services. In 2009, LG-Nortel generated approximately USD 650 million of sales
and had 1,300 employees.
The joint venture includes important contracts with Korean operators such as KT,
LG Telecom and SK Telecom.
SEB Enskilda was Ericsson's sole financial advisor in the transaction.
Notes to editors:
Photos of Mats H. Olsson:
www.ericsson.com/ericsson/press/photos/mats_h_olsson.shtml
Announcement on share purchase agreement:
www.ericsson.com/news/1406030
Previously announced information on Ericsson's acquisitions of Nortel assets:
www.ericsson.com/ericsson/press/releases/20090725-1330882.shtml
www.ericsson.com/ericsson/press/releases/20091113-1354893.shtml
www.youtube.com/ericssonpress#p/u/7/D3yDHV9O_5o
Korean President and Ericsson CEO meet and agree to cooperate for 4G-based green
eco-system
www.ericsson.com/thecompany/press/releases/2009/07/1328344
Our multimedia content is available at the broadcast room:
www.ericsson.com/broadcast_room
Ericsson is the world's leading provider of technology and services to telecom
operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and
provides support for networks with over 2 billion subscribers and has the
leading position in managed services. The company's portfolio comprises mobile
and fixed network infrastructure, telecom services, software, broadband and
multimedia solutions for operators, enterprises and the media industry. The Sony
Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich
personal mobile devices.
Ericsson is advancing its vision of being the "prime driver in an
all-communicating world" through innovation, technology, and sustainable
business solutions. Working in 175 countries, more than 80,000 employees
generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in
1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX
NASDAQ, Stockholm and NASDAQ New York.
www.ericsson.com
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www.youtube.com/ericssonpress
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail:media.relations(at)ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail:investor.relations(at)ericsson.com
[HUG#1428285]
Press release in PDF: http://hugin.info/1061/R/1428285/375676.pdf
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Source: Ericsson via Thomson Reuters ONE
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Datum: 30.06.2010 - 03:29 Uhr
Sprache: Deutsch
News-ID 23203
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