Ericsson to buy Telcordia for $1.15 billion in cash
14 June 2011
Mobile network gear maker Ericsson will buy US group Telcordia for $1.15 billion in cash to reinforce and expand its position as the leading player in mobile, broadband and enterprise communications software and services
Ericsson will acquire 100 per cent of the shares of Telcordia from Providence Equity Partners LLC and Warburg Pincus, for $1.15 billion, in an all-cash transaction - on a cash and debt-free basis.
Telcordia, a leader in operations support systems and business support systems (OSS/BSS), has approximately 2,000 employees who will join Ericsson.
The deal is expected to close in the last quarter of the current year with full effect from first quarter of 2012.
"The importance of operations and business support systems will continue to grow as more and more devices are connected, services become mobile and new business models for mobile broadband are introduced.
In this context, Telcordia brings very skilled people and knowledge, a large business in North America and other markets, as well as a good multi vendor product portfolio," Hans Vestberg, president and CEO of Ericsson, said.
"We have global presence and scale, global services capabilities and superior knowledge about networks and network performance, as well as an already established position in the OSS/BSS space. It is a perfect fit," he added.