Finland's Tieto inks deal to buy part of Siemens Convergence Creators telecom R&D
Tieto has entered an agreement with Siemens to buy a portion of Siemens Convergence Creator (SCC)'s telecom research and development (R&D) businesses. The acquisition will strengthen the voice and IP transformation portflio of Tieto Product Development Services (PDS), according to The Wall Street Journal (WSJ).
Under the terms of the said deal, Tieto will acquire SCC's Network Directory Server, Home Location Register, Radio Access, and IP Multimedia Systems businesses. Around 220 workers in Austria, Croatia, the Czech Republic, and Slovakia will also move to Tieto subsidiaries. In addition, new businesses related to important customers will also move to Tieto PDS, the report detailed.
SCC Chief Executive Officer Daniel Felicio said of the deal during the contract signing ceremony: "With Tieto we hand over these businesses to a worthy successor, who guarantees that customer satisfaction for the provided services will stay at the same high level."
The final transition to the Finnish company is scheduled on April 1, 2014, WSJ reported.