Ericsson part of winning bid for Nortel's patent portfolio
Categories: Press Releases
- Ericsson's contribution to transaction USD 340 million
- Expected to close in the third quarter of 2011
As announced separately by Nortel Networks Corporation, a consortium of certain technology companies, of which Ericsson (NASDAQ:ERIC) is a part, emerged as the winning bidder for all of Nortel's remaining patents and patent applications for a cash purchase price of USD 4.5 billion. The transaction is subject to approval by the United States and Canadian Bankruptcy Courts.
The Nortel patent portfolio comprises approximately 6,000 patents and patent applications from information and communication technologies (ICT) industry, including telecommunications, internet search and social networking. It covers mobile, LTE and data networking as well as optical, internet, service provider, semiconductors and other patent portfolios.
Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson, says: "The Nortel patent portfolio reflects the heritage of more than 100 years of its R&D activities and includes some essential patents in telecommunications and other industries. We believe the consortium is in the best position to utilize the patents in a manner that will be favorable to the industry long term."
SEB Enskilda is acting as financial advisor to Ericsson in the transaction.
NOTES TO EDITORS:
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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 180 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.
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