Ericsson sells TEMS business for $169m

Ericsson has sold its TEMS-branded business to Swiss-based Ascom for 190 million francs ($169 million), as part of the company's strategic shift towards telecom services rather than products.

The TEMS product business provides tools for air interface monitoring and radio network planning. The business is no longer strategically valuable under Ericsson's new service focus, the company said.

TEMS generated revenue of 165 million francs in 2008 and has over 450 customers, including the world's 20 largest mobile network operators, said wireless solutions firm Ascom. The company said it expects to turn a profit from the acquisition by 2010.

As part of the agreement, around 300 Ericsson employees - including 180 from Sweden - will be transferred to Ascom. The transaction is expected to close in June.

Ericsson recently placed its semiconductor business into a joint venture with STMicroelectronics as another step in its shift in focus to services, and is rumored to be considering leaving the unprofitable Sony Ericsson joint venture.

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