By Telecom Lead Team: Ericsson has completed the
acquisition of Telcordia for $1.15 billion in an all cash transaction, on a
cash and debt-free basis.
Telcordia is now part of the Ericsson Group and its
approximately 2,600 skilled employees have joined Ericsson.
Today’s closing follows the announcement on June 14,
2011, that Ericsson had entered into a merger agreement with Providence Equity
Partners and Warburg Pincus to acquire 100 percent of the shares of Telcordia.
The addition of Telcordia’s skilled people and
knowledge, a good multi vendor product portfolio and an important customer base
in North America, complement Ericsson’s already established
position in the OSS/BSS space. OSS and BSS are key to drive the customer
experience and serve as the engine to monetizing traffic, offerings and
products that operators sell. All in all, these systems are crucial to create
the experience users expect in a cost efficient manner,” said Per Borgklint,
head of Ericsson‘s
business unit Multimedia.
The combination of the two companies creates the leader
in service fulfilment, service assurance and network optimization and gives
Ericsson a leading position in real-time charging and significant capabilities
to support operators end to end. The combination will address the needs of
Communications Service Providers to deliver mobile broadband and operational
transformation to their subscribers.
The OSS/BSS is a growing market driven by the demand for
business efficiency, innovation and high quality user experience. In 2010, the
market for software and systems integration was valued at about USD 35 billion
and is expected to show a compound annual growth rate between 6-8 percent
between 2010 and 2013. In addition, there is an attractive market for
outsourced and hosted OSS and BSS managed services, growing in the same range.
Telcordia will be managed by Ericsson’s business unit
Multimedia but sales and margins will be shared between Multimedia and Services
depending on portfolio mix.
