& cplSiteName &

Ericsson to Buy Telcordia

Ray Le Maistre

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 HP Inc. (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        ADD A COMMENT
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.

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.   

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... 


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.



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

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

Up 2.4% to $14.07... 

User Rank: Light Sabre
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?

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?



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;


Educational Resources
sponsor supplied content
Educational Resources Archive
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Flexible Deployment Approaches for the Gigabit Services Evolution

9|29|16   |     |   (0) comments

For many operators, the gigabit evolution begins with the shift from DOCSIS 3.0 to DOCSIS 3.1. But that move represents a change not only in the protocol itself, but in the approach to architecting their entire DOCSIS delivery chain -- from the headend to the outside plant and home gateway components.

Jonathan Ruff, senior director of global technical ...

LRTV Interviews
Level 3 VP: Enterprises Need More for Less

9|29|16   |   05:27   |   (0) comments

Andrew Dugan, Level 3 group vice president of global technology and IT, says enterprises need more bandwidth and they need it faster and with greater security, but they want to spend less, if possible. They are looking to carriers to reduce their network complexity and help protect them from cyberattacks as well.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments

Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments

At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments

Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Reusable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments

The next generation of NFV has to break functions down into reusable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments

At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments

At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment

More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments

Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (20) comments

Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments

How do you keep your career moving forward when you're past the half-century mark?
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
WiCipedia: The Women Helping Women Edition
Eryn Leavens, Special Features & Copy Editor, 9/23/2016
Powell Kills the Cable Show
Mari Silbey, Senior Editor, Cable/Video, 9/29/2016
Telstra Sees Quadrupled Data Capacity by 2020
Carol Wilson, Editor-at-large, 9/28/2016
Open Source Getting on My Nerves
Carol Wilson, Editor-at-large, 9/26/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.