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Ericsson sells product development operations to TietoEnator

Ericsson has today signed an agreement with TietoEnator to sell its development operations in Karlstad, Luleå, Umeå, and Skellefteå in Sweden. This is in line with Ericsson’s ongoing concentration of development activities.

Press release  |  Sep 26, 2002 06:57 (GMT +00:00)

TietoEnator will take over approximately 860 employees involved in software development for mobile and fixed systems. The value of the sale is approximately SEK 500 million.

“Ericsson sees TietoEnator as an important future supplier and strategic partner to the company,” says Per-Arne Sandström, Chief Operating Officer of Ericsson. “The sale is another step in our overall strategy to consolidate and streamline our development activities.”

“Telecom is a long term growth market and it is of great strategic importance to us to establish this partnership,” says Åke Plyhm, deputy CEO of TietoEnator. “Ericsson is definitely an important partner to us.”

The transfer of Ericsson’s development operations to TietoEnator will take place in the beginning of November 2002, pending Swedish Competition Authority.