Ericsson, at the weekend, concluded the acquisition of
Telcordia, a global leader in the development of mobile, broadband and
enterprise communications software and services, for USD 1.15 billion, about
N186,2bn 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.
ITRealms Online gathered that this acquisition consolidates
Ericsson’s position as a leading player in operations support systems/business
support systems (OSS/BSS) market with key position in service fulfillment,
assurance, network optimization and real-time charging.
Also, industry watchers said that this deal would boost
Ericsson’s earnings per share within 12 months, adding that the conclusion of
the Telcordia deal follows the announcement on June 14, 2011, that Ericsson had
entered into a merger agreement with Providence Equity Partners, LLC and
Warburg Pincus to acquire 100 per cent of the shares of Telcordia.
Per Borgklint, Head of Ericsson’s business unit Multimedia,
said that the addition of Telcordia’s skilled people and knowledge, is a good
multi vendor product portfolio and an important customer base in North America,
thus complements 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,” he said.
The combination of the two companies, he said, creates the
leader in service fulfillment, 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, he explained 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 is headquartered in Piscataway, New Jersey, and
generated revenues of USD 739 million during the last fiscal year ended January
31, 2011.
ITREALMS Online ... delivering news for ICT4D
No comments:
Post a Comment