It looks like the $1.15 billion mega-merger between Ericsson and Telcordia won't close by the end of the year as first thought.
Ericsson announced today that it doesn't have all of the regulatory approvals needed, and with the holidays upon us, reaching its year-end acquisition goal is unlikely. The Sweden-based telecom equipment giant says it's working diligently with the remaining government authorities who have yet to sign off on the deal. The company is now predicting it to close "in the beginning of 2012."
Ericsson said on June 14 that would it buy Telcordia, the New Jersey-based software and services company. The deal gives Ericsson a portfolio of scalable software that makes it claims will make its networks more efficient and extend 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.
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.
Telcordia employs more than 2,600 people. It generated revenues of $739 million in its last fiscal year.
