Ericsson has entered into an asset purchase agreement to acquire Nortel’s Multi-Service Switch (MSS) business for a cash purchase of $65m.
However, the transaction is subject to court approval and customary regulatory approvals.
With this acquisition, Ericsson will be able to access a strong product portfolio and installed base in the data segment, while ensuring the supply of the MSS platform for the recently acquired CDMA and GSM units.
MSS offers the sale and support of data networks and switching platforms for core networks within the recently acquired wireless and carrier voice divisions, Ericsson said.
Ericsson senior vice president and head of business unit CDMA Mobile Systems Rima Qureshi said the company continue to strengthen its in-house R&D and services muscle to deliver on the innovation, collaboration and support that its customers have come to expect from it.
SEB Enskilda is acting as Ericsson’s sole financial advisor in the transaction.
