Ericsson has signed an agreement to acquire the telecom business of Sunrise Technology, a Chinese provider of IT services for operations and business support systems (OSS/BSS).
Sunrise Technology, which is headquartered in Guangzhou, China, will continue to exist as a separate entity serving customers in sectors other than telecom.
The unit being acquired has a strong track record of delivering complex IT solutions to leading operators in China. About 1,000 employees - almost all of whom are based in Guangzhou - will join Ericsson by Q2 2015, subject to customary closing conditions. These employees have expertise in IT consulting; systems integration for charging and billing systems, customer relationship management and business intelligence/analytics solutions; and application development and maintenance.
Magnus Mandersson, executive vice president and head of business unit Global Services at Ericsson, said: "The acquisition of Sunrise Technology's telecom business will boost our ability to serve mobile operators' IT transformation needs in China, and is aligned with our strategy of becoming a global ICT leader.
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“China is the world's biggest mobile market in terms of number of subscriptions, with 1.285 billion. Most of the country's telecom operators are at the beginning of their IT transformation journeys, and will soon replace their legacy IT systems with next-generation solutions that will enable them to launch digital offerings,” he added.
Mats H. Olsson, senior vice president and head of Asia-Pacific at Ericsson, said that the acquisition would “significantly strengthen” Ericsson’s position in China. "The skills and experience of the Sunrise Technology employees will be key for us to continue providing leading services to our customers in China," he said.
The deal the latest in a line of acquisitions by Ericsson in the OSS/BSS space. Previous acquisitions include Telcordia (2012), TeleOSS and Telcocell (2013), GEOSS (2014), and TimelessMIND (2015).
Sunrise Technology's telecom business will be integrated with Ericsson's Global Services business, which employs 65,000 employees in 180 countries. Ericsson's consultants and systems integrators complete more than 1,500 consulting, systems integration and learning services projects in multi-vendor and multi-technology environments each year.