STOCKHOLM, SWEDEN--(Marketwire - Jun 14, 2011) -
* Reinforces and expands Ericsson's position as leading player in
operations support systems/business support systems (OSS/BSS) market with
key position in service fulfilment, assurance, network optimization and
* Telcordia provides core competence and a leading market position within
the OSS/BSS field - Ericsson brings global presence, service capabilities
and leadership in OSS, charging and billing solutions
* Ericsson will acquire 100 percent of the shares of Telcordia for USD
1.15 billion in an all cash transaction, on a cash and debt-free basis --
approximately 2,600 employees to join Ericsson
Ericsson (NASDAQ: ERIC), the world leader in telecommunications technology
service, today announced that it has reached an agreement with Providence
Partners, LLC and Warburg Pincus to acquire 100 percent of the shares of
Telcordia, a global leader in the development of mobile, broadband and
enterprise communications software and services, for USD 1.15 billion.
anticipated to Q4 2011 with full effect Q1 2012.
Hans Vestberg, President and CEO, Ericsson, says: "The importance of
and business support systems will continue to grow as more and more devices
connected, services become mobile and new business models for mobile
are introduced. In this context, Telcordia brings very skilled people and
knowledge, a large business in North America and other markets, as well as
good multi vendor product portfolio."
"We have global presence and scale, global services capabilities and
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.
One of the main challenges for operators is how to handle the growth in
and fixed broadband traffic, as well as the new types of connected devices,
services and applications and the high expectations on user experience,
the same time increasing the efficiency in business and operations.
OSS and BSS are critical areas to handle this challenge and to simplify the
processes that support the business. They drive the customer experience and
serve as the engine to monetizing traffic, offerings and products that
sell. All in all, these systems are crucial to create the experience users
expect in a cost efficient manner.
Mark Greenquist, President and Chief Executive Officer, Telcordia, says:
combination of Ericsson's global leadership position and Telcordia's
long-standing expertise in solving the most complex communications
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
strategy to capitalize on the growth opportunities in the OSS/BSS
industry. We appreciate the significant value added by Providence and
Pincus over the last six years," he concludes.
Providence and Warburg said, "We are confident that the company will
from becoming part of Ericsson, a clear global leader in providing
and services to telecom operators."
The OSS/BSS is a growing market driven by the demand for business
innovation and high quality user experience. In 2010, the market for
and systems integration is valued at about USD 35 b and is expected to show
compound annual growth rate between 6-8 percent between 2010 and 2013. In
addition, there is an attractive market for outsourced and hosted managed
services, growing in the same range.
Building complementary strengths
Ericsson has a proven track record in building, integrating and managing
networks. Telcordia's portfolio of proven and scalable software that make
networks more efficient, extends Ericsson's leadership and footprint in
OSS and positions it as a leading vendor for operational knowledge,
network, software, services, processes and efficiency in the growing
Furthermore, Ericsson's capabilities and leading position in global
systems integration will allow OSS/BSS portfolio to expand and support more
operators around the world.
The deal creates the leader in Service Fulfilment, Service Assurance and
Optimization and gives Ericsson a leading position in real-time charging
significant capabilities to support operators end to end. The combination
address the needs of Communications Service Providers to deliver mobile
broadband and operational transformation to their subscribers.
Telcordia is headquartered in Piscataway, New Jersey, generated revenues of
USD739 million during the last fiscal year ended January 31, 2011 and
more than 2,600 people.
The transaction is subject to customary regulatory approvals and is
be accretive to Ericsson earnings per share within 12 months after closing.
Notes to editors:
Ericsson and Telcordia will host a joint phone briefing for media and
at 14:30 CET, e-mail Ericsson Media Relations, email@example.com
log in details.
Picture of Hans Vestberg:
Our multimedia content is available at the broadcast room:
Ericsson is the world's leading provider of technology and services to
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
and fixed network infrastructure, telecom services, software, broadband and
multimedia solutions for operators, enterprises and the media industry. The
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
solutions. Working in 180 countries, more than 90,000 employees generated
revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876
the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX,
Stockholm and NASDAQ New York.
Telcordia, a global leader in the development of mobile, broadband and
enterprise communications software and services, enables Communications
Providers (CSPs), enterprises, suppliers and governments to successfully
innovative and advanced services that help our clients realize operational
efficiencies, drive revenue, and maintain a competitive edge. As the
go-to expert for solving the most complex communications challenges,
is known for getting it right the first time and for having the depth of
expertise to fully understand our customers' situation, respond
and deliver as promised. Telcordia has globally trusted expertise in
and services to meet the needs of customers and partners, including,
next-generation OSS, network and application interconnection, service
and charging solutions, industry research and new technology development .
Telcordia is headquartered in Piscataway, N.J., with offices throughout
America, Europe, Asia, Central and Latin America. (www.telcordia.com)
Ericsson discloses the information provided herein pursuant to the
Markets Act and/or the Financial Instruments Trading Act. The information
submitted for publication on June 14, 2011 at 13:30 CET.
Ericsson to acquire Telcordia (pdf):
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Source: Ericsson via Thomson Reuters ONE