Ericsson’s software company sells for $169.8million

TEMS is a software company focused on optimisation solutions for mobile networks and has about 300 employees around the globe. Ascom revealed in a statement that the acquisition 'significantly increases Ascom's revenue' and is expected to be 'earnings per share accretive in 2010'. Following the transaction, Ascom will have three divisions concentrating on wireless solutions, security communication and network testing. Ascom's ceo, Riet Cadonau, said: "This acquisition is a logical next step, following the takeover of Argogroup and Comarco WTS in 2008. TEMS represents an excellent strategic addition for Ascom and can be merged with the mobile test solutions business unit to form a powerful third Ascom division. This will strengthen Ascom's global presence and, due to TEMS' very solid profitability, our target of a two digit EBIT margin on a group level becomes realistic in 2010." Approximately 300 Ericsson employees will now move to the Stockholm based company.