Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Nigerian air force mistakenly bombs refugee camp killing at least 50 people

Read more

MEDIAWATCH

Brexit Means Hard Brexit

Read more

THE DEBATE

Hard Brexit, here we come: UK to leave EU common market (part 1)

Read more

THE DEBATE

Hard Brexit, here we come: The blowback against globalisationt (part 2)

Read more

ENCORE!

Art on the wire and online: Jean-Hubert Martin on curating in cyberspace

Read more

FOCUS

Inside China's answer to Silicon Valley

Read more

ACCESS ASIA

Behind the scenes at China's Harbin snow festival

Read more

THE INTERVIEW

'Donald Trump is a great friend of Israel'

Read more

BUSINESS DAILY

Davos 2017: World Economic Forum wary of post-Brexit future

Read more

Business

Ericsson to buy Nortel's network division for 795 million euros

Text by NEWS WIRES

Latest update : 2009-07-27

Swedish telecoms giant Ericsson is set to pay 795 million euros to buy the network division of Canada's now defunct Nortel. The company said the acquisition will have a positive impact on earnings within a year after closing.

AFP - Swedish telecoms manufacturer Ericsson said Saturday it is buying a North American chunk of Canada's failed Nortel Networks for 1.13 billion dollars (795 million euros).
  
In a statement, Ericsson said it will take over the carrier networks division of Nortel relating to CDMA and LTE techology in North America -- a deal that includes contracts with the likes of Verizon and Bell Canada.
  
CDMA is a mobile phone standard widely used in North America, where the global GSM standard is less commonplace. LTE is a next-generation standard for bigger and faster mobile phone networks.
  
The acquisition -- at a firesale auction of Nortel assets in New York on Friday -- will make North America the biggest region within Ericsson, which last year reported sales there of 2.7 billion dollars.
  
"The transaction is expected to have a positive effect on Ericsson's earnings within a year after closing," the company said.
  
Once Canada's largest company, Nortel has been struggling since the dot.com collapse. It filed for bankruptcy protection in both the United States and Canada in January as it faced 107 million dollars in interest on its debt.
  
In June, it had announced an agreement to sell most of its wireless business to Nokia Siemens Networks for 650 million dollars, before a court order was issued for the assets to be auctioned instead.

Date created : 2009-07-25

COMMENT(S)