LM Ericsson Telephone Company
) recently announced its intention to acquire the Telecom &
Media subsidiary of France-based consulting company, Devoteam.
This acquisition is in line with Ericsson's strategy of expanding
its IT capabilities.
Devoteam is a leading player in the information and
communications technology consulting across Europe, Middle East
and Africa. The company's core competency lies in consulting and
systems integration for operations and business support, service
delivery platforms and applications, IP Multimedia Subsystems, IP
and radio networks and TV. This deal also includes the
acquisition of TV SmartVision operations.
This deal is also consistent with Devoteam's 2015 strategic
plan to become a niche player and focus more on the company's
Prior to this deal, Ericsson has been a key business partner
for Devoteam in the United Kingdom and the Mediterranean regions.
Therefore, this acquisition is expected to further strengthen the
alliance between the two companies moving forward.
The deal is expected to be complete by second quarter of 2013
whereby all the 400 professionals from Devoteam's subsidiary will
be joining Ericsson. However, the closure is subject to
regulatory compliance and procedures.
Ericsson seeks to gain expertise in complex, strategic and
technical consulting assignments through the acquisition, which
will enable it to enhance customer value. Apart from this,
Ericsson has completed two major acquisitions of Telcordia and
Conceptwave in the recent past.
Through the Telcordia acquisition, Ericsson has emerged as one
of the most comprehensive providers of OSS/BSS solutions, which
is a key element of any operator's network. Moreover, with
Conceptwave's software solutions on board Ericsson strengthened
its offering of software solutions to telecom operators.
Ericsson has a Zacks Rank #1 (Strong Buy) along with its
), all of whom have a Zacks Rank #1 (Strong Buy).
ERICSSON LM ADR (ERIC): Free Stock Analysis
INTERDIGITL INC (IDCC): Free Stock Analysis
NOKIA CP-ADR A (NOK): Free Stock Analysis
QUALCOMM INC (QCOM): Free Stock Analysis
VIASAT INC (VSAT): Free Stock Analysis Report
To read this article on Zacks.com click here.