Ericsson nabs Nortel's GSM business in US & Canada
Ericsson and Austrian company Kapsch CarrierCom have secured the assets of Nortel’s carrier networks division for US$70 million (€46 million) following the completion of the auction process.
Ericsson will hold the GSM business assets in the US and Canada while Kapsch CarrierCom, will pay $33 million for most of the remaining GSM assets outside North America.
The transaction is expected to have a positive effect on Ericsson's earnings within a year after closing.
“Along with our recent acquisition of Nortel's CDMA and LTE assets, the transaction emphasizes Ericsson's commitment to the North American market," said Ericsson's incoming CEO Hans Vestberg.
Last week Ericsson completed the acquisition of Nortel's CDMA and LTE, assets in North America.
The acquisition includes the transfer of critical GSM business with US operators including AT&T and T-Mobile, which significantly expands its North American footprint.
Ericsson said it would also take on 350 Nortel employees. "Our Ericsson family will be once again enriched by the addition of the valuable Nortel employees," Vestberg said.