Ericsson to acquire Nortel's North American GSM business
(Thomson Reuters ONE) - Ericsson (NASDAQ:ERIC) was today selected as successful bidder toacquire certain assets of the Carrier Networks division of Nortelrelating to Nortel's GSM business in the US and Canada. The purchaseis structured as an asset sale at a cash purchase price of USD 70million on a cash and debt free basis, subject to adjustments. Thisannouncement follows the completion of the auction process initiatedby Nortel, and the transaction is subject to approval by courts inthe US and Canada and customary regulatory approvals and otherconditions.Ericsson's bid for Nortel's GSM assets was made together with KapschCarrierCom AG of Austria. Under the agreements, Ericsson is acquiringcertain assets of Nortel's GSM business in North America while Kapschis paying USD 33 million to acquire most of the remaining assetsoutside North America.Ericsson acquires an installed GSM base, which expands its NorthAmerican footprint. The acquisition further strengthens Ericsson'sability to serve North America's leading wireless operators, whichnow benefit from the strength of the combined resources in anexperienced and financially strong company."Along with our recent acquisition of Nortel's CDMA and LTE assets,the transaction emphasizes Ericsson's commitment to the NorthAmerican market and strengthens our position as a leading provider oftelecommunications technology and services in the United States andCanada" said Hans Vestberg, incoming President and CEO of Ericsson."Our Ericsson family will be once again enriched by the addition ofthe valuable Nortel employees."The agreement includes the transfer of important GSM business withNorth American operators such as AT&T and T-Mobile. Under theagreement Ericsson will offer employment to approximately 350employees from Nortel. Nortel's North American GSM operationsgenerated approximately USD 400 million in 2008.Ericsson's North American business generated SEK 17.9 bn (USD 2.7 b)of sales in 2008, mainly from GSM and WCDMA equipment and associatedservices. Together with the recently announced acquisition of CDMAand LTE assets as well as the Sprint services agreement, theacquisition makes North America the largest geographical segmentwithin Ericsson and encompasses some 14,500 employees, up from 5,000at the beginning of 2009.The acquired operations will contribute top- and bottom-lineadditions to Ericsson. The transaction is expected to have a positiveeffect on Ericsson's earnings within a year after closing.Consummation of the transaction is subject to approval by the UnitedStates and Canadian Bankruptcy Courts and the satisfaction ofregulatory and other conditions.SEB Enskilda is acting as Ericsson's sole financial advisor in thetransaction.Notes to editors:Picture of Hans Vestberg:www.ericsson.com/ericsson/press/photos/management.shtmlPreviously announced information on Ericsson's acquisitions of Nortelassets:www.ericsson.com/ericsson/press/releases/20090725-1330882.shtmlwww.ericsson.com/ericsson/press/releases/20091113-1354893.shtmlwww.youtube.com/ericssonpress#p/u/7/D3yDHV9O_5oEricsson's multimedia content is available at the broadcast room:www.ericsson.com/broadcast_roomEricsson 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: media.relations(at)ericsson.comEricsson discloses the information provided herein pursuant to theSecurities Markets Act and/or the Financial Instruments Trading Act.The information was submitted for publication at on November 25, 2009at 07.40 CET.http://hugin.info/1061/R/1357032/329989.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 25.11.2009 - 07:40 Uhr
Sprache: Deutsch
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