Light Reading

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        ADD A COMMENT
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 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?

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
From The Founder
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference – a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
Between the CEOs
Affirmed Networks CEO: Digging Into NFV

5|28|15   |   40:26   |   (2) comments


Hassan Ahmed, CEO of Affirmed Networks, is making some big claims for his NFV startup. I sat down with him at the Light Reading HQ in New York City to get the skinny on what this Acton, Mass.-based startup is up to.
LRTV Documentaries
Cable Eyeing SDN for Headend, Home Uses

5|26|15   |   05:57   |   (1) comment


CableLabs is looking at virtualizing CMTS and CCAP devices in the headend, as well as in-home devices, says CableLabs' Karthik Sundaresan.
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity – Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Procera has gathered facts, stats and customer experience feedback from a survey of 540 users from across the globe.
Hot Topics
Charter Seals Deals for TWC, Bright House
Mari Silbey, Senior Editor, Cable/Video, 5/26/2015
Eurobites: Alcatel-Lucent Trials 400G in Czech Republic
Paul Rainford, Assistant Editor, Europe, 5/26/2015
Will Carriers Follow Facebook's Networking Lead?
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/28/2015
Charter Plans Business Services, Wireless Push
Alan Breznick, Cable/Video Practice Leader, 5/27/2015
Facebook Reinvents Data Center Networking
Mitch Wagner, West Coast Bureau Chief, Light Reading, 5/26/2015
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
On May 29th 1 PM ET, Steve Saunders, founder and CEO of Light Reading, will be drilling into the "pains and gains" of NFV with Saar Gillai, SVP & GM for NFV at Hewlett-Packard Co. (NYSE: HPQ) (HP). He has defined a four-step NFV model describing a sequence of technology innovation. It's a must-read doc for any network architect looking to get to grips with their NFV migration strategy. Join us for the interview, and the chance to ask Saar your NFV questions directly!
Hassan Ahmed, CEO of Affirmed Networks, is making some big claims for his NFV startup. I sat down with him at the Light Reading HQ in New York City to get the skinny on what this Acton, Mass.-based startup is up to.
Cats with Phones