) last week closed the acquisition of Canada-based Telcocell, a
consulting and systems integration company that specializes in
Business Support Systems (BSS). The financial terms of the deal
were not disclosed. The decision to acquire Telcocell was
announced on Jul 23, 2013.
Business support systems (BSS) are the components used by
telephone operators or telecommunication service providers to
provide its business operations to customers.
The acquisition perfectly complements Ericsson's existing
portfolio and will primarily strengthen Ericsson's BSS
transformation capabilities, particularly in North America.
Ericsson is expected to benefit from Telcocell's consulting and
systems integration expertise in converged charging, custom
development, quality assurance and production support for
Telcocell is a leading provider of successful BSS solutions to
customers in the communications industry. Its leading clients
include companies such as
) and T-Mobile. According to the agreement, approximately 200
Telcocell's employees and consultants based in Canada and U.S.
will be joining Ericsson.
Through this acquisition, Ericsson will also strengthen its
capability in the area of Information and Communication
Technology (ICT) to offer full transformation capabilities.
Recently, Ericsson announced its plans to invest SEK 7 million
($1 billion) (1 SEK= $1.5110 as on Sep 2, 2013) investment to
construct three global Information and Communication Technology
centers (ICT) in the next five years. These ICT centers will
primarily be supporting the R&D organization to develop and
verify solutions, creating the foundation for the next generation
technology and cloud-based services.
Headquartered in Stockholm, Sweden, Ericsson is a
multinational company engaged in manufacturing and selling
wireless infrastructure equipment to the telecom sector. It is a
total network solutions provider, serving wireless and wireline
operators, enterprises and consumers.
Ericsson currently has a Zacks Rank #3 (Hold). Another company
operating in the same industry and worth mentioning is
Ubiquiti Networks Inc.
), carrying a Zacks Rank #1 (Strong Buy).
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