Technicolor announced that it has closed its $600 million acquisition of Cisco's CPE unit, Cisco Connected Devices.
Nokia CEO Rajeev Suri said Ericsson and Cisco's partnership to resell each other's products and services and jointly develop new ones means that Nokia was right to purchase rival Alcatel-Lucent for $16.6 billion (€15.6 billion). Nokia also commenced its formal share offer to buy Alcatel-Lucent's outstanding shares and drive the merger toward completion early next year.
Ericsson's President and CEO Hans Vestberg took a moment to squash rumors that Cisco wants to purchase the company following a new partnership the pair announced for future technology developments.
Ericsson president and CEO Hans Vestberg sought to quell speculation the company was a takeover target of U.S. rival Cisco that arose after the two companies announced plans to partner on future network technology development.
Cisco reported overall profits that were better than some analysts expected during its most recent quarter, but the company's financial expectations for the coming months were below forecasts. And the company's CPE business-- which Cisco is in the process of selling to Technicolor-- reported a 14 percent slowdown in its revenues to $411 million.
Cisco's routing segment is in a bit of limbo as the vendor reported that first quarter revenue declined 8 percent to $1.8 billion due to the timing of some of the orders it has from its key customers.
Ericsson and Cisco's partnership to resell each other's products and services and jointly develop new ones could generate well more than the $1 billion each in revenue by 2018 that the vendors have projected, according to senior executives at the firms. Meanwhile, John Chambers, Cisco's executive chairman and former CEO, indicated that he thinks Nokia's deal to acquire Alcatel-Lucent is likely to fail, something Nokia dismissed.
Ericsson cut its outlook for how much the network equipment will grow over the next few years, but still said it aimed to grow faster than the market. The company also thinks it will be aided by a new partnership it unveiled yesterday with Cisco to integrate existing gear, combine some sales and consulting efforts potentially jointly develop new hardware and services.
The news broke this week that mobile network supremo Ericsson and Cisco, a pervasive and dominant force in IP networking, plan to form a partnership rather than merging in order to benefit from each other's strengths in a changing and increasingly competitive world.
Cisco and Ericsson plan to jointly develop a series of SDN and NFV solutions as part of a broader strategic global business and technology partnership that will highlight the capabilities of both companies