Ericsson (NASDAQ:ERIC) has today entered an agreement to acquire Telenor Connexion's M2M (machine-to-machine) technology platform. The acquisition follows Ericsson's ambition to drive the market for M2M communication, adding valuable technology and know-how from eleven employees that will be transferred as part of the deal. Telenor Connexion is wholly owned by Telenor Group, one of the world's major mobile operators with 203 million mobile subscribers.
Telenor Connexion also becomes the first customer to Ericsson on its Device Connection Platform, a service launched during the Mobile World Congress in February. The Device Connection Platform offers telecom operators a way to set up tailored M2M services for enterprise customers and is brought to market with a 'software as a service' business model, providing a low initial investment in technology and a fast time to market.
Mobile connectivity is used in several M2M solutions such as smart meters and fleet management and is useful in all products with software, which can be easily upgraded if they were connected to a mobile network.
Per Simonsen, CEO at Telenor Connexion says: "M2M solutions have gained momentum and the market is much more mature compared to when we formed Telenor Connexion in 2008. Utilizing our offering on Ericsson's platform means that we can focus our resources on value adding services, improved and customized products, and partnerships to further strengthen our position as the leading provider of premium M2M solutions for business and life critical applications."
Magnus Furustam, Vice President, Head of Core & IMS at Ericsson, says: "Telenor Connexion's M2M technology platform complements our service and will improve our offering, adding the know-how of the pioneers in this area. Our ambition is to grow the M2M market and offer our customers a solution that they can quickly use on the market for a low initial investment."
The acquisition includes Telenor Connexion's M2M technology platform and transfer of eleven employees who will continue to work with development of the service offering provided on Ericsson's Device Connection Platform.
The acquisition is not subject to approval from authorities but to contractual agreements before closing. No financial details about acquiring the assets have been announced.
Notes to editors:
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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