Ericsson will acquire the North American business, Nortel GSM-production equipment

The company Ericsson announced that it has been declared the winner of the tender for the acquisition of the assets, Carrier networks company Nortel, relating to the production of GSM-equipment in the U.S. and Canada. This acquisition is issued as a sale of assets totaling $ 70 million dollars, excluding the free cash and borrowed funds from the possible adjustment of prices. Announcement followed after the completion of trades initiated by the company Nortel. The deal should go through procedure in the courts of the United States and Canada, as well as standard procedures for the approval of regulatory authorities.

The company Ericsson has applied for participation in the bidding for the assets of Nortel, relating to the production of GSM-equipment, together with the Austrian company Kapsch CarrierCom AG. Under the agreement, Ericsson acquires a portion of such assets in North America, and Kapsch for 33 million dollars buys most of its remaining assets outside of North America.

As a result, Ericsson receives GSM-installed base of equipment, allowing the presence of the company in North America will expand. The transaction, with the words Ericsson, strengthens its position in terms of servicing the leading North American wireless operators, who now receive the benefits of pooling resources within the same financial stable company with a rich experience.

The agreement also provides for the transfer of an important business for the supply and service of GSM-equipment of the North American operators such as AT & T and T-Mobile. Under the agreement, Ericsson will provide approximately 350 jobs to staff Nortel. In 2008, this business has brought about 400 million U.S. dollars.

Ericsson said that the acquired unit would like to increase revenues from sales, and improve the bottom line. As expected, Ericsson earnings rise year after the completion of all transactions on the transaction.

The deal must also undergo the procedure before the courts of the United States and Canada for bankruptcy, as well as the approval of regulatory authorities.

Bank SEB Enskilda acts as sole financial advisor to the company Ericsson during this transaction.