4G technology assets acquired for $1.13billion
The wireless equipment unit of Nortel Networks is to be bought by Ericsson for $1.13billion. Ericsson has beaten bids from Nokia Siemens Networks and also MarinPatterson Global Advisers.
The deal will see Ericsson acquire the majority of the operations currently providing many operators with 3G mobile voice and data technology.
The original selling price was estimated as being between $650million and $1.1bn, however, Ericsson was prepared to go beyond these figures as it believes the North American region will emerge as a prime adaptor for lte technology. Presently, 400 of Nortel's employees work in the field of 4G technology.
Over the next five years, the acquisition could boost Ericsson's global market share by more than 5%, while in North America, the figure could reach 30%.
