Monday, June 13, 2011

Ericsson to acquire Telcordia, Bolstering Role in OSS

Ericsson has agreed to acquire Telcordia for US$1.15 billion in cash. The deal creates a leader in Service Fulfilment, Service Assurance and Network Optimization and gives Ericsson a leading position in real-time charging and significant capabilities to support operators end to end.

Telcordia, which is headquartered in Piscataway, New Jersey, generated revenues of US$739 million during the last fiscal year. The company supplies mobile, broadband and enterprise software and services. Its portfolio includes Next Generation OSS — with a focus on planning & engineering, fulfillment, and service assurance -- as well as Service Delivery & Charging software for mobile operators. Telcordia also serves as a global administrator of industry interconnection directories and registries, helping carriers to find, route, connect and interact for high-value voice and data services. The company employs more than 2,600 people.

Ericsson said the deal will enhance its role in building, integrating and managing carrier networks. Ericsson's position in global services and systems integration is also expected to bolster Telcordia's OSS/BSS portfolio to expand and support more operators around the world.

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

"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," stated Hans Vestberg, President and CEO, Ericsson.

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