Acquisition of Nortel's Multi-Service Switch business
· Confirms commitment to CDMA portfolio
· Strengthens R&D and services capabilities within CDMA
· Cash purchase of USD 65 million
Ericsson (NASDAQ:ERIC) has today entered into an asset purchase agreement to acquire Nortel's Multi-Service Switch business (MSS). This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the MSS platform for the recently acquired CDMA and GSM units.
An important part of the CDMA ecosystem, MSS offers the sale and support of data networks and switching platforms for core networks within the recently acquired wireless and carrier voice divisions. MSS serves a valuable need for a multiplicity of services that the backbone network provides today for our customers.
The purchase is structured as an asset purchase at a cash purchase price of USD 65 million on a cash and debt free basis, subject to adjustments. This announcement follows the completion of the auction process initiated by Nortel, and the transaction is subject to court approval and customary regulatory approvals.
"Today's announcement is further evidence of our commitment to our CDMA portfolio as we continue to strengthen our in-house R&D and services muscle to deliver on the innovation, collaboration and support that our customers have come to expect from us." said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.
Consummation of the transaction is subject to approval by the relevant Bankruptcy Courts and the satisfaction of regulatory and other conditions.
SEB Enskilda is acting as Ericsson's sole financial advisor in the transaction.
Notes to editors:
Photos of Rima Qureshi:
www.ericsson.com/ericsson/press/photos/rima_qureshi.shtml
Previously announced information on Ericsson's acquisitions of Nortel assets:
www.ericsson.com/thecompany/press/releases/2010/04/1406030
www.ericsson.com/thecompany/press/releases/2009/11/1357032
www.ericsson.com/thecompany/press/releases/2009/07/1330882
www.ericsson.com/thecompany/press/releases/2010/04/1406030
www.youtube.com/ericssonpress#p/u/7/D3yDHV9O_5o
Ericsson's multimedia content is available at the broadcast room:
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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 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
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