Acquisition of Nortel's Multi-Service Switch business
(Thomson Reuters ONE) -
· Confirms commitment to CDMA portfolio
· Strengthens R&D and services capabilities within CDMA
· Cash purchase of USD 65 million
Ericsson (NASDAQ:ERIC) has today entered into an asset purchase agreement to
acquire Nortel's Multi-Service Switch business (MSS). This acquisition gives
Ericsson access to a strong product portfolio and installed base in the data
segment while ensuring the supply of the MSS platform for the recently acquired
CDMA and GSM units.
An important part of the CDMA ecosystem, MSS offers the sale and support of data
networks and switching platforms for core networks within the recently acquired
wireless and carrier voice divisions. MSS serves a valuable need for a
multiplicity of services that the backbone network provides today for our
customers.
The purchase is structured as an asset purchase at a cash purchase price of USD
65 million on a cash and debt free basis, subject to adjustments. This
announcement follows the completion of the auction process initiated by Nortel,
and the transaction is subject to court approval and customary regulatory
approvals.
"Today's announcement is further evidence of our commitment to our CDMA
portfolio as we continue to strengthen our in-house R&D and services muscle to
deliver on the innovation, collaboration and support that our customers have
come to expect from us." said Rima Qureshi, senior vice president and head of
business unit CDMA Mobile Systems.
Consummation of the transaction is subject to approval by the relevant
Bankruptcy Courts and the satisfaction of regulatory and other conditions.
SEB Enskilda is acting as Ericsson's sole financial advisor in the transaction.
Notes to editors:
Photos of Rima Qureshi:
www.ericsson.com/ericsson/press/photos/rima_qureshi.shtml
Previously announced information on Ericsson's acquisitions of Nortel assets:
www.ericsson.com/thecompany/press/releases/2010/04/1406030
www.ericsson.com/thecompany/press/releases/2009/11/1357032
www.ericsson.com/thecompany/press/releases/2009/07/1330882
www.ericsson.com/thecompany/press/releases/2010/04/1406030
www.youtube.com/ericssonpress#p/u/7/D3yDHV9O_5o
Ericsson's 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 NASDAQ
OMX, Stockholm and NASDAQ New York
www.ericsson.com
www.twitter.com/ericssonpress
www.facebook.com/technologyforgood
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#1446864]
Release in pdf format:
http://hugin.info/1061/R/1446864/389729.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ericsson via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 25.09.2010 - 14:01 Uhr
Sprache: Deutsch
News-ID 43039
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