· High level of data experience in key locations
· Customers gain a stable, committed partner
· The Multiservice Switch business will operate under the Ericsson brand as of today
Ericsson (NASDAQ:ERIC) has today completed the asset purchase agreement to acquire Nortel's Multiservice Switch business. This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the platform for the recently acquired CDMA and GSM units.
"We are gaining a solid business with a significant installed base and technology that complements our existing Ericsson portfolio. In key locations around the globe, we grow our data capability with experienced and talented people." said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.
An important part of the CDMA ecosystem, the Multiservice Switch business offers the sale and support of data networks and switching platforms for core networks within the wireless and carrier voice divisions, previously acquired from Nortel. The Multiservice switches, to be called PPX henceforth, serve a valuable need for a multiplicity of services that the backbone network provides today for our customers.
Today's closing follows the announcement on September 25, 2010, that Ericsson was entering into an asset purchase agreement for substantially all of the assets of Nortel's Multiservice Switch Business.
The former Nortel Multiservice Switch staff will be integrated into the Ericsson group in business unit CDMA Mobile Systems over the coming months and will work under the Ericsson brand effective today. Former Nortel customers gain a stable partner committed to the ongoing evolution of their networks and the assurance of a seamless business transition.
SEB Enskilda acted as Ericsson's sole financial advisor in the transaction.
Notes to editors:
Photos of Rima Qureshi:
Previously announced information on Ericsson's acquisitions of Nortel assets:
Ericsson's multimedia content is available at the broadcast room:
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 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
Ericsson Investor Relations
Phone: +46 10 719 00 00