Swedish telecom equipment maker Ericsson said Wednesday it has signed an agreement to acquire Guangdong Nortel Telecommunication Equipment Company Ltd for 50 million dollars.
“We are very happy to welcome this key competence into Ericsson’s newest business unit,” said Rima Qureshi, head of Ericsson’s CDMA Mobile Systems unit. “We have built a strong foundation with the CDMA & GSM teams acquired from Nortel. With these new assets, we take control of our business by acquiring capabilities for the continued development of the CDMA & GSM businesses.”
GDNT, founded in 1995, is a leading research, development and manufacturing company based in China and an important supplier to Ericsson following the acquisitions of the CDMA and GSM businesses of Nortel.
“The acquisition greatly complements our existing R&D, manufacturing and services capabilities in the region,” said Mats H Olsson, President of Ericsson China & North East Asia. “It will no doubt allow us to provide even better support to our customers across the region who are serving one of the largest GSM and CDMA subscriber bases in the world.”
The transaction is expected to have a positive effect on Ericsson’s
