Ericsson (ERIC) recently announced that it has agreed to acquire Canada-based Telcocell, a consulting and systems integration company that specializes in Business Support Systems (BSS). The transaction is expected to be completed by the end of the third quarter of 2013, but other financial terms of the deal were not disclosed.
The acquisition is expected to perfectly complement Ericsson’s existing portfolio and it will primarily strengthen Ericsson’s BSS transformation capabilities, particularly in North America. Ericsson is expected to benefit from Telcocell's consulting and systems integration expertise in converged charging, custom development, quality assurance and production support for BSS.
Telcocell is a leading provider of successful BSS solutions to customers in the communications industry. Its leading clients include companies such as Accenture plc (ACN), Comcast Corporation (CCV) and T-Mobile.
Through this acquisition, Ericsson will also strengthen its capability in the area of Information and Communication Technology (ICT) to offer full transformation capabilities. According to the agreement between the two companies, approximately 200 Telcocell’s employees and consultants based in Canada and U.S. will be joining Ericsson.
Business support systems (BSS) are the components used by telephone operators or telecommunication service providers to provide its business operations to customers.
Headquartered in Stockholm, Sweden, Ericsson is a multinational company engaged in manufacturing and selling wireless infrastructure equipment to the telecom sector. It is a total network solutions provider, serving wireless and wireline operators, enterprises and consumers.
Ericsson currently has a Zacks Rank #3 (Hold). Other companies operating in the same industry and are worth mentioning include Sonus Networks Inc. (SONS) and Mitel Networks (MITL). Both carry a Zacks Rank #2 (Buy).
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