Ericsson to acquire Telcordia

Ericsson will acquire Telcordia. It is on a strategic agreement with Providence Equity Partners, LLC and Warburg Pincus to acquire 100 per cent of the shares of Telcordia for USD 1.15 billion. Closing anticipated to Q4 2011 with full effect Q1 2012, said a release on the company's website.

The deal enhances Ericsson's position in real-time charging and significant capabilities to support operators end to end. The combination will address the needs of Communications Service Providers to deliver mobile broadband and operational transformation to their subscribers.

Hans Vestberg, president and CEO, Ericsson, says, "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."

"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 adds.

Mark Greenquist, president and chief executive officer, Telcordia, said, "The combination of Ericsson's global leadership position and Telcordia's long-standing expertise in solving the most complex communications challenges will benefit customers through new services and expanded capabilities."

"Together, we will lead the way into a new era of converged communications, while expanding our offerings to manage the world's most dynamic networks. Ericsson's acquisition of Telcordia signals their commitment to their future strategy to capitalize on the growth opportunities in the OSS/BSS communications industry. We appreciate the significant value added by Providence and Warburg Pincus over the last six years," he concludes.

Providence and Warburg said, "We are confident that the company will benefit from becoming part of Ericsson, a clear global leader in providing technology and services to telecom operators."

The transaction is subject to customary regulatory approvals and is expected to be accretive to Ericsson earnings per share within 12 months after closing, release added.