Ericsson, a technology services provider to telecom operators, has completed the asset purchase agreement to acquire Nortel’s Multiservice Switch business.
This acquisition is expected to give Ericsson access to a strong product portfolio and installed base in the data segment while ensuring the supply of the platform for the recently acquired CDMA and GSM units.
The Multiservice Switch business being an important part of the CDMA ecosystem offers the sale and support of data networks and switching platforms for core networks within the wireless and carrier voice divisions, previously acquired from Nortel.
The Multiservice switches, to be called PPX henceforth, serve a valuable need for a multiplicity of services that the backbone network provides today for our customers, Ericsson said.
Ericsson senior vice president and head of business unit CDMA Mobile Systems Rima Qureshi said they are gaining a solid business with a significant installed base and technology that complements their existing Ericsson portfolio.
"In key locations around the globe, we grow our data capability with experienced and talented people," Qureshi said.
The completion of the agreement follows the announcement on 25 September 2010, that Ericsson was entering into an asset purchase agreement for substantially all of the assets of Nortel’s Multiservice Switch Business.
The former Nortel Multiservice Switch staff will be integrated into the Ericsson group in business unit CDMA Mobile Systems over the coming months and will work under the Ericsson brand.
The transaction for Ericsson was advised by financial firm SEB Enskilda.
