Swedish telecom vendor Ericsson has completed the acquisition of Telcordia, a US-based developer of mobile, broadband and enterprise communications software and services, for $1.15 billion in cash.
Telcordia is now part of the Ericsson Group and its 2,600 employees have joined the vendor.
Ericsson originally announced the deal in June 2011, when it entered into a merger agreement with Providence Equity Partners, LLC and Warburg Pincus to acquire 100% of Telcordia’s shares.
The deal is expected to strengthen Ericsson’s position in the fast growing areas of service fulfillment, service assurance and network optimisation. It also gives Ericsson a leading position in real-time charging and significant capabilities to support operators.
Per Borgklint, head of Ericsson’s business unit multimedia, said: “The addition of Telcordia’s skilled people and knowledge, a good multi vendor product portfolio and an important customer base in North America, complement 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 monetising 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.”
The OSS/BSS 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 $35 billion and is expected to show a compound annual growth rate between 6-8% 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 $739 million during the last fiscal year ended January 31, 2011. Telcordia will be managed by Ericsson’s multimedia business.
