Ericsson Completes Acquisition of Nortel's GSM Business

Ericsson, leading infrastructure solutions provider, announced the completion of the purchase of all the assets of Nortel's GSM business on April 1, 2010. The closing of the deal follows the announcement made on November 25, 2009, according to which Ericsson has agreed to the purchase of all of these assets, the company stated.

“The addition of Nortel's skilled GSM experts adds additional depth to Ericsson's newest business unit,” said Rima Qureshi, head of Ericsson's CDMA unit. “The CDMA team acquired from Nortel late last year has built a strong foundation already, and this new acquisition places us in a great position to support our growing list of North American and International customers.”

According to the infrastructure provider, the acquisition includes the transfer of GSM business with North American operators and is set to further strengthen Ericsson's capability to offer its services to leading wireless carriers on the continent. Additionally, the company announced that 350 employees from Nortel would be integrated in its group during the following months. Ericsson's portfolio includes mobile and fixed network infrastructure, telecom services, broadband, multimedia and software solutions for operators, the media industry and enterprises.

“The completion of this acquisition strengthens our position as a leading provider of telecommunications technology and services in the United States and Canada and shows our commitment to the market,” said Angel Ruiz, head of Ericsson North America. “The skill and experience the Nortel employees bring to Ericsson will help us continue to provide exceptional services to our customers.”

Ericsson also revealed that its bid for Nortel's GSM business included the acquisition of certain assets of the company in North America, and that assets outside the continent would be purchased by Kapsch CarrierCom AG of Austria. Last year, Ericsson purchased Nortel's CDMA and LTE assets in North America. “The acquired operations are expected to be accretive to Ericsson's earnings within a year after closing,” the company concluded.