Ericsson strengthens global position with completion of Nortel
acquisition in North America
(Thomson Reuters ONE) - Ericsson (NASDAQ: ERIC) today completed its acquisition ofsubstantially all of Nortel's CDMA business and LTE assets in NorthAmerica. With this acquisition, Ericsson enhances its leading globaltelecommunications equipment supplier position and will further itsquest to bring high-speed data connectivity to people on the move.The Nortel acquisition, on the heels of important breakthroughcontract wins for Ericsson in North America, positions Ericsson asthe leading provider of telecommunications technology and services inthe United States and Canada."Separately, our two companies played leading roles in freeing voicetelephony from its fixed limitations," said Hans Vestberg, Ericsson'sincoming president and chief executive officer. "Together, we will dothe same for broadband - make it mobile and bring the benefits ofhigh-speed data connectivity to the majority of the world'spopulation"."This deal, along with our recently announced services and LTEagreements, demonstrates the importance of the North American marketto Ericsson. Our strength in the region proves to our globalcustomers that we are capable of continuing to provide the bestequipment and services, in a scaleable and efficient way," saidVestberg.In terms of sales, North America will now be Ericsson's largestregion. According to Angel Ruiz, head of Ericsson's North Americanoperations, the acquisition significantly expands Ericsson'sfootprint in North America, particularly as the region is emerging asan early adopter of LTE technology."Ericsson will enjoy new access to North American CDMA customers andcan better support CDMA networks that will transition to LTE, "saidRuiz.In addition to the talented people Ericsson gains through thecombination, it will also benefit from intimate knowledge of Nortel'sCDMA customers and their networks. In turn, these operators gain astable partner committed to the ongoing evolution of their networks,and the assurance of a seamless transition."I look forward to working with the more than 2,500 highly skilledcolleagues in North America and China arriving from Nortel," saidMagnus Mandersson, president of Ericsson CDMA Operations. Combinedwith the transition of employees in the recent Sprint deal, Ericssonnow has some 14,000 employees in North America, making it thecompany's second largest market based on number of employees.The acquisition includes the transfer of important CDMA contractswith North American operators including Verizon, Sprint, U.S.Cellular, Bell Canada, Telus and Leap, as well as LTE assets, certainpatents and patent licenses relating to CDMA and LTE. Nortel'scustomers will also benefit from the continued support of Nortel'sinstalled CDMA base and the migration path to LTE.Today's closing follows the announcement on July 25, 2009, thatEricsson was entering into an asset purchase agreement of USD 1.13 b.for these assets, subject to approval by the United States andCanadian Bankruptcy Courts and the satisfaction of regulatory andother conditions.The former Nortel staff will be integrated into the Ericsson groupover the coming months and the entity will work under the Ericssonbrand beginning today.The results for these operations will be consolidated by Ericsson ona pro-rata basis from the closing date proportionally within segmentsNetworks and Professional Services. The report for the fourth quarter2009 will be the first accounts including the new entity.Notes to editors:A video interview with Hans Vestberg available in our broadcast roomon: www.ericsson.com/press/broadcastroomEricsson is the world's leading provider of technology and servicesto telecom operators. Ericsson is the leader in 2G, 3G and 4G mobiletechnologies, and provides support for networks with over 1 billionsubscribers and has a leading position in managed services. Thecompany's portfolio comprises of mobile and fixed networkinfrastructure, telecom services, software, broadband and multimediasolutions for operators, enterprises and the media industry. The SonyEricsson and ST-Ericsson joint ventures provide consumers withfeature-rich personal mobile devices.Ericsson is advancing its vision "to be the prime driver in anall-communicating world" through innovation, technology, andsustainable business solutions. Working in 175 countries, more than75,000 employees generated revenue of SEK 209 billion (USD 32.2billion) in 2008. Founded in 1876 with the headquarters in Stockholm,Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ NewYork.www.ericsson.comwww.twitter.com/ericssonpressFOR FURTHER INFORMATION, PLEASE CONTACTEricsson Corporate Public & Media RelationsPhone: +46 10 719 69 92E-mail: media.relations(at)ericsson.comInvestorsEricsson Investor RelationsPhone: +46 10 719 00 00E-mail: investor.relations(at)ericsson.comEricsson Media Relations North AmericaKathy EganPhone: +1 212-843-8422E-mail: press.relations(at)ericsson.comhttp://hugin.info/1061/R/1354893/328663.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 13.11.2009 - 17:55 Uhr
Sprache: Deutsch
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