A monster of a merger will link telecommunications technology titan, Ericsson, with software and services giant, Telcordia, in a deal worth $1.15 billion.
In buying Telcordia, Stockholm-based Ericsson picks up a portfolio of scalable software that makes its networks more efficient and extends its footprint in mobile OSS. As a result of the merger, Ericsson says it will be a strong vendor for operational knowledge, including network, software, services, processes and efficiency in the growing OSS/BSS market. Ericsson says its capabilities and position in global services and systems integration will allow its OSS/BSS portfolio to expand and support more operators around the world.
“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," said Hans Vestberg, president and CEO, Ericsson. “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."
Ericsson says the deal makes it a leader in service fulfillment, service assurance and network optimization, and gives the company a leading position in real-time charging, supporting operators end to end. The merger is designed to address the needs of communications service providers to deliver mobile broadband and operational transformation to their subscribers.
“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," said Mark Greenquist, president and CEO of Telcordia.
Piscataway, N.J.-based Telcordia, which employs more than 2,600 people, generated revenues of $739 million in its last fiscal year.
The transaction is subject to customary regulatory approvals.
