Light Reading
The rumors about Telcordia's acquisition were right, but the identity of the buyer will surprise many

Ericsson to Buy Telcordia

Ray Le Maistre
6/14/2011
50%
50%

So the rumors were true! (See Telcordia Acquired?)

Ericsson AB (Nasdaq: ERIC) is to acquire Telcordia Technologies Inc. for US$1.15 billion in cash, the Swedish vendor announced Tuesday. (See Ericsson to Acquire Telcordia.)

The move will make Ericsson one of the biggest Service Provider Information Technology (SPIT) vendors in the global market when the deal closes, as it will add its existing OSS and BSS capabilities to Telcordia's extensive suite of software products and services that generated revenues of $739 million in the 12 months to Jan. 31, 2011.

About 2,600 staff will join Ericsson as part of the deal, which, says the European giant, "reinforces and expands Ericsson's position as [a] leading player in [the] operations support systems/business support systems (OSS/BSS) market with key position in service fulfilment, assurance, network optimization and real-time charging."

Ericsson's CEO Hans Vestberg noted in the official news announcement that "the importance of operations and business support systems will continue to grow as more and more devices are connected, services become mobile and new business models for mobile broadband are introduced. In this context, Telcordia brings very skilled people and knowledge, a large business in North America and other markets, as well as a good multi vendor product portfolio."

Light Reading reported industry speculation in early May that Telcordia was in the process of being acquired, though at that stage the identity of the buyer was unknown.

Subsequent industry gossip pointed to Hewlett-Packard Co. (NYSE: HPQ) as the likely buyer, but that speculation proved wide of the mark. (See Telcordia's Suitor Identified.)

Talk that Telcordia was once again on the block surfaced earlier this year, prompting an examination of the company's business and the question, What's Telcordia Worth?

— Ray Le Maistre, International Managing Editor, Light Reading

(8)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
upand2theright
50%
50%
upand2theright,
User Rank: Light Beer
12/5/2012 | 5:02:03 PM
re: Ericsson to Buy Telcordia


$1.15 billion for a company with $780M in revenues?   Investors are not getting a boost on that deal, Ray.  I smell a competitive bid coming.

digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:02:02 PM
re: Ericsson to Buy Telcordia


Ericsson's share price in Stockholm is up 1.6% to SEK88.65 following the news.   

digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:02:02 PM
re: Ericsson to Buy Telcordia


That's an interesting suggestion! WHo do you think might pitch in with a higher bid though? It seems plenty of cmompanies have run the ruler over Telcordia and Ericsson's offer might just be the best the owners are going to get.


 


I think if you looked at how much cash the current private equity owners have managed to take from their Telcordia asset during the past 6 years then the ROI on the deal for them would look far bettr than just a $1.15b cash in the bank from ERIC.


Just a guess - I have no financials I am basing that on... 


 

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
12/5/2012 | 5:02:02 PM
re: Ericsson to Buy Telcordia


 


How about Alcatel?


E has been shut out of a lot of AT&T business because they are not in the OSS environment built by ALU.  Alcatel seems to slip that part of the OSS all the time.  Perhaps this is a way in or a way to put pressure on ALU.


seven


 

digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:02:01 PM
re: Ericsson to Buy Telcordia


This is certainly a game-changer in terms of the USA vendor competitive positioning as it should in theory:


 


-- put pressure on ALU as you mention -- ERIC will have a direct 'in' through Telcordia's legacy assets


-- be a further pain in the side of NSN which has bene hoping its Moto deal would give it gtreater leverage in the USA. ERIC is kinda trumping that with this move.


-- make it even harder for Huawei to make any sort of m,ajor impression in USA, not that it was going to have an easy time to start with


-- gives IBM, HP, Amdocs and others something to think about in terms of back office transformation opportunity cmopetition -- ERIC managed services + Telcordia OSS smarts is an  interesting combo

digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:02:01 PM
re: Ericsson to Buy Telcordia


Up 2.4% to $14.07... 

jayja
50%
50%
jayja,
User Rank: Light Beer
12/5/2012 | 5:01:58 PM
re: Ericsson to Buy Telcordia


FOC testing, GR's etc.  How can Eircsson run that business when they are a prospective client?

digits
50%
50%
digits,
User Rank: Light Beer
12/5/2012 | 5:01:50 PM
re: Ericsson to Buy Telcordia




<div style="color: #000000; font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 10px; background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: #ffffff; margin: 8px;">

They get fast-tracked?


Kidding....


&nbsp;


I imagine there may need to be some ring-fencing or spin-oofs amongst the jumble that is Telcordia... Imagine what this could have been like when OSMINE was in full swing?!&nbsp;

</div>



Flash Poll
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
Connecticut Cities Crowdsource Gigabit Nets
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/15/2014
Pics: LR's Women in Telecom Breakfast
Sarah Reedy, Senior Editor, 9/16/2014
Like Us on Facebook
Twitter Feed