Ericsson has entered into an agreement to acquire certain assets of the Guangdong Nortel Telecommunication Equipment (GDNT) for $50m on a cash and debt free basis.
GDNT is a research, development and manufacturing company based in China and a supplier to Ericsson following the acquisitions of the CDMA and GSM businesses of Nortel.
The purchase agreement includes R&D facilities, manufacturing facilities, support and customer service in China.
Ericsson said that approximately 1,100 employees, including 550 R&D engineers will be integrated in to the Ericsson group over the coming months.
Ericsson CDMA mobile systems unit head Rima Qureshi said they have built a strong foundation with the CDMA & GSM teams acquired from Nortel and with these new assets, they take control of their business by acquiring capabilities for the continued development of the CDMA & GSM businesses.
