Ericsson to snap up Telcordia in $1.15-bn deal
Swedish firm Ericsson will acquire telecom-software entity Telcordia for $1.15 billion, a deal that would boost the telecom equipment maker overall market presence.
Ericsson and Telcordia have good presence in India.
In a statement, Ericsson said it has reached an agreement with Providence Equity Partners, LLC and Warburg Pincus to acquire 100% shares of Telcordia.
The transaction, worth $1.15 billion, is expected to be close in the fourth quarter of 2011.
US-based Telcordia is into global leader in the development of mobile, broadband and enterprise communications software and services.
"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," Ericsson President and CEO Hans Vestberg said.
Telcordia's President and CEO Mark Greenquis said the deal signals Ericsson's future strategy to capitalise on the growth opportunities in the OSS/BSS communications industry.
OSS/BSS refers to Operations Support Systems/Business Support Systems.
According to Telcordia's website, its clients include Tata Teleservices, Idea Cellular, Reliance Communications and Department of Telecommunications (DoT), among others.
Telcordia, which employs over 2,600 people, raked in revenues of $739 million for the fiscal year ended January 31, 2011.