Ericsson has announced that it will acquire 100 percent of shares in Telcordia, a mobile, broadband and enterprise communications software and services provider, for $1.15 billion (approx. Rs.5130 crore), in an all cash transaction, on a cash and debt-free basis.
Telcordia India‘s joint venture with Gurgaon based Deepak Talwar Consultants, MNP Interconnection Telecom Solutions India Pvt Ltd (MITS), manages India’s Mobile Number Portability solutions in South and East of India for 11 circles: Kolkata, Karnataka, West Bengal, North East, Tamil Nadu including Chennai, Kerela, Assam, Orissa, Andhra Pradesh, Madhya Pradesh and Bihar. In 2009, Telcordia picked up to pick up upto 74% foreign investment in the mobile number portability venture, and allowed a foreign investment of Rs. 45 crore. MNP Interconnection Telecom Solutions India has a 5 year mandate, as per the license. Telcordia has also been operational in the Indian market since 2006, and lists Tata Teleservices, Idea Cellular, Reliance Communications, Aircel and India’s Department of Telecom as its clients.
Following the acquisition, around 2,600 Telcordia employees will join Ericsson. The deal is expected to close by Q4 2011 and will come into full effect from Q1 2012. Through the acquisition, Ericsson will be able to leverage Telcordia’s skills and expertise in the field of operations support systems (OSS) and Business support systems (BSS), in addition to its business in North America and other markets and its multi-vendor product portfolio.
Headquartered in New Jersey (USA), Telecordia offers OSS & BSS solutions to 800 customers across 55 countries and owns 1800 patents.