) recently announced that it has agreed to acquire Canada-based
Telcocell, a consulting and systems integration company that
specializes in Business Support Systems (BSS). The transaction is
expected to be completed by the end of the third quarter of 2013,
but other financial terms of the deal were not disclosed.
The acquisition is expected to perfectly complement Ericsson's
existing portfolio and it 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
(CCV) and T-Mobile.
Through this acquisition, Ericsson will also strengthen its
capability in the area of Information and Communication
Technology (ICT) to offer full transformation capabilities.
According to the agreement between the two companies,
approximately 200 Telcocell's employees and consultants based in
Canada and U.S. will be joining Ericsson.
Business support systems (BSS) are the components used by
telephone operators or telecommunication service providers to
provide its business operations to customers.
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). Other companies
operating in the same industry and are worth mentioning include
Sonus Networks Inc
). Both carry a Zacks Rank #2 (Buy).
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