Ensures continued development of CDMA and GSM businesses
All assumed agreements will be honored and fulfilled
Adds R&D, manufacturing and services capabilities
Ericsson (NASDAQ:ERIC) has today completed the asset purchase agreement to acquire certain assets of the Guangdong Nortel Telecommunications Equipment Company Ltd (GDNT). This acquisition gives Ericsson talented R&D engineers, manufacturing and services professionals, as well as manufacturing and research facilities in the China region and ensures continued development of the CDMA & GSM businesses.
"With these new assets, we can even better support our customers globally," said Rima Qureshi, Senior Vice President and Head of Business Unit CDMA Mobile Systems. "Our new and agile employees complement the existing R&D, manufacturing and services capabilities of our business."
Mats H Olsson, President of Ericsson China & North East Asia said: "The completion of this acquisition reaffirms our strong commitment to the China market, while greatly enhancing our existing R&D, manufacturing and services capabilities in the region. I'm very happy to welcome this new source of energy into the Ericsson family and look forward to its continuous contribution to the development of GSM and CDMA markets not only here in the region, but also in the world."
Today's closing follows the announcement on December 1, 2010, that Ericsson was entering into an asset purchase agreement to acquire certain assets of the Guangdong Nortel Telecommunication Equipment Company Ltd (GDNT).
Some 1,000 former GDNT employees, including approximately 550 R&D engineers will be integrated in to the Ericsson group over the coming months and will work under the Ericsson brand effective today. Former GDNT customers gain a business partner dedicated to the ongoing support of their networks and the assurance of a seamless transition. Manufacturing and Services will operate as a separate business entity, known as "Ericsson (Guangdong Shunde) Communications Company Limited, effective immediately.
SEB Enskilda acted as Ericsson's sole financial advisor in the transaction.
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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 175 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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