Seven months after the deal was announced, Ericsson on Thursday announced completing its $1.15 billion cash acquisition of Telcordia, an expert in business and operations support systems for communications service providers.
Telcordia, which was sold by its private owners Providence Equity Partners, LLC and Warburg Pincus, has become a part of the Ericsson Group, the communications infrastructure giant based in Stockholm, Sweden. For the fiscal year ending Jan. 31, 2011, Telcordia generated revenues of $739 million.
Ericsson, which now employs roughly 2,600 individuals from Piscataway, N.J.-based Telcordia, said the deal makes it a leader in the operations and business support systems market.
"The addition of Telcordia's skilled people and knowledge, a good multi vendor product portfolio and an important customer base in North America, complement Ericsson's already established position in the OSS/BSS space," said Per Borgklint, Head of Ericsson's business unit Multimedia, in a statement. "OSS and BSS are key to drive the customer experience and serve as the engine to monetizing traffic, offerings and products that operators sell. All in all, these systems are crucial to create the experience users expect in a cost efficient manner."
Ericsson noted its business unit Multimedia will manage Telcordia, although Ericsson's Multimedia and Services units will share responsibility for sales and margins depending on the portfolio mix.
The Telcordia acquisition, Ericsson declared, "creates the leader in service fulfillment, service assurance and network optimization and gives Ericsson a leading position in real-time charging and significant capabilities to support operators end to end."
For more information on the merger and how the deal will impact Telcordia's partners, suppliers and others, click here.