Ericsson to acquire Nortel wireless division
Swedish telecom giant Ericsson has bought the wireless division of Canadian group Nortel, currently under bankruptcy protection from creditors, for the equivalent of more than $1 billion (8 billion kronor).
The purchase will be made in cash and on a debt-free basis, according to a statement from Ericsson.
Ericsson is buying Nortel's operations for the CDMA mobile system and the new LTE Internet technology.
“Acquiring Nortel's North American CDMA business allows us to serve this important region better as we build relationships for the future migration to LTE....This deal, along with our recently announced Sprint service agreement, truly positions Ericsson as a leading telecoms supplier in North America," said Carl-Henric Svanberg, President and CEO of Ericsson.
Following the deal, Ericsson's North American business will have around 14,000 employees will become the company's largest region. According to Ericsson, the operation has been profitable and has improved the overall performance of the company.
As part of the agreement, 2500 Nortel employees will now work for Ericsson. The deal is dependent upon approval by authorities and the American and Canadian bankruptcy courts.
Previously, Nortel sold its wireless technology manufacturing unit to Nokia for 4.85 billion kronor ($625 million) and recently sold its corporate network unit to Avaya for the equivalent of 3.3 billion ($425 million) kronor.
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The purchase will be made in cash and on a debt-free basis, according to a statement from Ericsson.
Ericsson is buying Nortel's operations for the CDMA mobile system and the new LTE Internet technology.
“Acquiring Nortel's North American CDMA business allows us to serve this important region better as we build relationships for the future migration to LTE....This deal, along with our recently announced Sprint service agreement, truly positions Ericsson as a leading telecoms supplier in North America," said Carl-Henric Svanberg, President and CEO of Ericsson.
Following the deal, Ericsson's North American business will have around 14,000 employees will become the company's largest region. According to Ericsson, the operation has been profitable and has improved the overall performance of the company.
As part of the agreement, 2500 Nortel employees will now work for Ericsson. The deal is dependent upon approval by authorities and the American and Canadian bankruptcy courts.
Previously, Nortel sold its wireless technology manufacturing unit to Nokia for 4.85 billion kronor ($625 million) and recently sold its corporate network unit to Avaya for the equivalent of 3.3 billion ($425 million) kronor.
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