Acquisition of GDNT, an R&D and services company in China
(Thomson Reuters ONE) -
· Secures continued development of CDMA and GSM businesses in China
· Complements existing R&D and services capabilities in the region
· Purchase price is USD 50 million
Ericsson (NASDAQ:ERIC) has today signed an agreement to acquire certain assets
of the Guangdong Nortel Telecommunication Equipment Company Ltd (GDNT). The
purchase is structured as an asset sale at a cash purchase price of USD 50
million on a cash and debt free basis, subject to final balance sheet
adjustments. The transaction is also subject to customary regulatory approvals
and other conditions.
GDNT is a leading research, development and manufacturing company based in China
and an important supplier to Ericsson following the acquisitions of the CDMA and
GSM businesses of Nortel. GDNT was founded in 1995 as a joint venture between
Nortel, a Canadian Telecommunications Company and local Chinese corporations and
telecom operators. The transaction also includes R&D facilities, manufacturing
facilities as well as support and customer service in China. Some 1,100
employees, including approximately 550 R&D engineers will be integrated in to
the Ericsson group over the coming months.
"We are very happy to welcome this key competence into Ericsson's newest
business unit," said Rima Qureshi, head of Ericsson's CDMA Mobile Systems unit.
"We have built a strong foundation with the CDMA & GSM teams acquired from
Nortel. With these new assets, we take control of our business by acquiring
capabilities for the continued development of the CDMA & GSM businesses."
"The acquisition greatly complements our existing R&D, manufacturing and
services capabilities in the region," said Mats H Olsson, President of Ericsson
China & North East Asia. "It will no doubt allow us to provide even better
support to our customers across the region who are serving one of the largest
GSM and CDMA subscriber bases in the world."
The transaction is expected to have a positive effect on Ericsson's earnings
within a year after closing.
SEB Enskilda is acting as Ericsson's sole financial advisor in the transaction.
Notes to editors:
Pictures of Rima Qureshi and Mats H Olsson:
www.ericsson.com/ericsson/press/photos/management.shtml
Previously announced information on Ericsson's acquisitions of Nortel assets:
http://www.ericsson.com/thecompany/press/releases/2010/09/1446864
http://www.ericsson.com/thecompany/press/releases/2010/04/1406030
http://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
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
www.twitter.com/ericssonpress
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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#1467349]
Press release in pdf:
http://hugin.info/1061/R/1467349/405162.pdf
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Source: Ericsson via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 01.12.2010 - 12:01 Uhr
Sprache: Deutsch
News-ID 49299
Anzahl Zeichen: 5408
contact information:
Town:
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Kategorie:
Business News
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