· High level of data experience in key locations
· Customers gain a stable, committed partner
· The Multiservice Switch business will operate under the Ericsson brand as of today
Ericsson (NASDAQ:ERIC) has completed the asset purchase agreement to acquire Nortel's Multiservice Switch business. This acquisition gives Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the platform for the recently acquired CDMA and GSM units.
"We are gaining a solid business with a significant installed base and technology that complements our existing Ericsson portfolio. In key locations around the globe, we grow our data capability with experienced and talented people." said Rima Qureshi, senior vice president and head of business unit CDMA Mobile Systems.
An important part of the CDMA ecosystem, the Multiservice Switch business offers the sale and support of data networks and switching platforms for core networks within the wireless and carrier voice divisions, previously acquired from Nortel. The Multiservice switches, to be called PPX henceforth, serve a valuable need for a multiplicity of services that the backbone network provides today for our customers.
Today's closing follows the announcement on September 25, 2010, that Ericsson was entering into an asset purchase agreement for substantially all of the assets of Nortel's Multiservice Switch Business.
The former Nortel Multiservice Switch staff will be integrated into the Ericsson group in business unit CDMA Mobile Systems over the coming months and will work under the Ericsson brand effective today. Former Nortel customers gain a stable partner committed to the ongoing evolution of their networks and the assurance of a seamless business transition.
SEB Enskilda acted as Ericsson's sole financial advisor in the transaction.
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