Ericsson fortifies operations support with new acquisition
One of the oldest players in the mobile phone industry expanded its internal infrastructure with the acquisition of Telcocell. The Swedish mobile heavyweight Ericsson announced that it bought the Canadian system integration and operations support systems provider.
In line with the buyout, Ericsson said that there will be 200 opened positions for the company. These jobs will be based in the United States and Canada.
No financial terms were announced by both companies. The phone company said that the transaction will close in the third quarter this year. Analysts claimed that this new acquisition will guarantee Ericsson a stronger hold of the services and software market. They also said that the company's past purchases in the OSS (operations support system) and BSS (business support system) sector will complement Telcocell's integration with Ericsson.
Previously, Ericsson purchased Telecordia for US$1.15 billion. Analysts saw a shift in the company's buyout priorities, noting that more software and services firms were being bought over its flagship products.