Ericsson, a provider of telecom equipments and solutions, announced it completed the asset purchase agreement to acquire Nortel's Multiservice Switch business.
With the acquisition, Ericsson will gain access to Nortel’s switch product portfolio and installed base in the data segment. The purchase will also be 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 at Ericsson.
The Multiservice Switch business is a vital part of Ericsson’s CDMA ecosystem. The switch business offers the sale and support of data networks and switching platforms for core networks within the wireless and carrier voice divisions.
The Multiservice switches, to be called PPX, are expected to serve a valuable need for a multiplicity of services that the backbone network provides to customers.
The former Nortel Multiservice Switch staff will be integrated into the Ericsson group in business unit CDMA Mobile Systems. They will work under the Ericsson brand. Former Nortel customers are expected to gain from the ongoing evolution of their networks and the assurance of a seamless business transition.
Ericsson is one of the main equipment makers which utilized the Nortel businesses.
In April 2010, Ericsson announced it entered into an agreement to acquire Nortel’s majority stake in LG-Nortel, the joint venture of consumer electronics major LG Electronics and Nortel Networks.
The acquisition was expected to significantly expand Ericsson's footprint in the Korean market and provide Ericsson with a well established sales channel and strong R&D capability in the country.