In an interview with Light Reading on Tuesday, when asked whether the Telcordia deal was the last of the big-ticket acquisitions for Ericsson, Vestberg said, "If you had asked me that before we bought Nortel, I would have said yes. But this industry is changing before our eyes."
But Vestberg said that there was now "nothing in sight for large acquisitions."
Not even Nortel's patents? Vestberg would not be drawn on Ericsson's interest, or not, in Nortel's patent portfolio. (See Euronews: Ericsson Eyes Nortel Patents.)
It's the rapidly changing nature of this industry that means Vestberg must be ever-vigilant for the next big opportunity. Ericsson's M&A strategy is to acquire companies only if there is an opportunity to consolidate the market, fill a gap in its product portfolio or take Ericsson into new growth areas.
Even with recent large acquisitions such as Nortel and now Telcordia, M&A will still account for a small proportion of Ericsson's growth, Vestberg explained. The main portion of Ericsson's growth will be organic, coming from where it already has products. "We have preferred an organic view on how to grow our business," he said.
Questions to Vestberg about the valuation of Telcordia were met with answers that were straight out of the presentation slides. "It's a sound business case and very complementary," he said. (See Why Ericsson Wants Telcordia .)
Here's a look back at some of Ericsson's M&A activity:
- Nortel Wireless Winner: It's Ericsson!
- Ericsson Snaps Up LG-Nortel Stake
- Ericsson Buys Another Piece of Nortel
- Ericsson Buys Another Bit of Nortel
- Ericsson Buys Nortel's GSM Biz Too
- Ericsson Buys Mobile SPIT Specialist
- Ericsson to Buy Telenor's M2M Platform
- Ericsson Buys North American Integrator
- Ericsson Snaps Up Systems Integrator
- Ericsson Offers $2.1B for Redback
- Ericsson Offers $1.4B for Tandberg TV
— Michelle Donegan, European Editor, Light Reading Mobile