Ericsson (NASDAQ: ERIC) said it will purchase Nortel Networks' stake in its networking joint venture with LG Electronics, LG-Nortel, for $242 million. The acquisition is the latest in a string of purchases Ericsson has made of bankrupt Nortel's assets.
The Swedish vendor agreed to purchase a 50 percent-plus-one-share controlling interest in the venture, which has provided networking equipment to South Korea's operators. Ericsson said the deal will expand the company's footprint in the country, and will enhance its position in the LTE market.
Nortel, which entered bankruptcy protection in the United States and Canada in January 2009, confirmed last year it was looking to sell its stake in the joint venture, which was formed in 2005. Reports began circulating in the South Korean press last month that Ericsson was interested in buying the stake.
The deal adds to Ericsson's collection of Nortel's assets; the Canadian equipment vendor began selling off pieces of itself last year. Ericsson purchased Nortel's CDMA and LTE assets for $1.13 billion last year, and also scooped up the company's North American GSM business.
- see this release
- see this Bloomberg article
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