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Nov. 26, 2009

Ericsson has acquired some of Nortel Networks’ North American GSM assets for $70 million in cash.

The news comes just a few months after it closed another deal to buy Nortel’s CDMA/LTE assets for $1.13 billion, outbidding rival infrastructure provider Nokia Siemens.

"Along with our recent acquisition of Nortel's CDMA and LTE assets, the transaction emphasizes Ericsson's strong commitment to the North American market and strengthens our position as a leading provider of wireless and telecommunications services in the U.S. and Canada" said Hans Vestberg, incoming President and CEO of Ericsson, in a statement.

Overall, Nortel’s GSM assets in other regions will be acquired by Kapsch Carrier Com AG of Austria, who will pay U.S. $33 million for the remaining assets outside North America.

Together with its earlier acquisition of Nortel’s CDMA and LTE assets and its outsourcing deal with Sprint, the deal of Nortel’s GSM technology makes Ericsson’s the largest market player in North America.

Ericsson now has about 14,500 employees throughout the U.S. and Canada, compared to just 5,000 at the beginning of 2009.

As part of today’s acquisition, Ericsson will now be able to offer employment to about 350 Nortel employees.

The acquisition of Nortel’s GSM assets includes the transfer of deals with other wireless carriers including AT&T and T-Mobile USA, both of whom operate on GSM technology as well.

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Source: Ericsson.