Tuesday, June 14, 2011

Ericsson to Buy Telcordia for $1.15B

It took almost 6 months since the rumors were spread (see "Telcordia for Sale" - here) to today's announcement by Ericsson - "that it has reached an agreement with Providence Equity Partners, LLC and Warburg Pincus to acquire 100 percent of the shares of Telcordia, a global leader in the development of mobile, broadband and enterprise communications software and services, for USD 1.15 billion. Closing anticipated to Q4 2011 with full effect Q1 2012."

See "Ericsson to acquire Telcordia" - here. Telcordia was sold to its current owners by SAIC more than 6 years ago (Nov '04) for $1.35B (here).

The PCRF angle - both vendors have a PCRF product - Telcordia's Real-Time Policy and Ericsson's Service-Aware Policy Controller (SAPC). Maybe the quote below hints which is going to stay:

"One of the main challenges for operators is how to handle the growth in mobile and fixed broadband traffic, as well as the new types of connected devices, services and applications and the high expectations on user experience, while at the same time increasing the efficiency in business and operations. OSS and BSS are critical areas to handle this challenge and to simplify the processes that support the business. They drive the customer experience and serve as the engine to monetizing traffic, offerings and products that operators sell. All in all, these systems are crucial to create the experience users expect in a cost efficient manner .. The deal creates the leader in Service Fulfilment, Service Assurance and Network Optimization and gives Ericsson a leading position in real-time charging and significant capabilities to support operators end to end. The combination will address the needs of Communications Service Providers to deliver mobile broadband and operational transformation to their subscribers".

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