Ericsson (NASDAQ:ERIC) and Combitech have signed an agreement for a transfer of 2G and 3G development units in Linköping and Gothenburg, Sweden. Combitech is a Nordic technology consultancy company with 1,400 employees. Combitech is already a strategic R&D consultancy supplier to Ericsson and will continue to be so after this transfer goes into effect.
The agreement supports Combitech’s growth strategy and ambition to be a leading Nordic technology consulting company.
The agreement also marks another step for Ericsson in continuing to execute on its R&D strategy and increase flexibility in R&D. Ericsson remains committed to its 2G and 3G portfolio but will consolidate development of these technologies to fewer sites.
Hans Torin, President and CEO, Combitech, says: “This agreement will strengthen our long-term strategy within digitalization, Cyber Security and Internet of Things. The new competence we will bring onboard from Ericsson will strengthen our capabilities in communication technologies and bring new market opportunities.”
The agreement is expected to be effective October, 2016, subject to customary regulatory approvals. Approximately 300 employees will transfer from Ericsson to Combitech.
Sinisa Krajnovic, Head of Development Unit Network Products, Ericsson says “We remain committed to our 2G and 3G portfolio and continue to execute on our R&D strategy. This includes optimizing the number of sites and suppliers we use for development. Combitech is a logical choice for this transfer and as part of this agreement; Ericsson is committed to a strong and lasting relationship with Combitech.”
The agreement and transfer of employees are not expected to have any significant impact on Ericsson’s financials.
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