Ericsson expands BSS capabilities with Telcocell acquisition

Telecom infrastructure heavyweight Ericsson (NASDAQ:ERIC) has acquired Canada-based Telcocell, which specializes in system integration and business support systems. The company said it will add about 200 employees and consultants in Canada and the U.S.

Financial terms of the deal were not disclosed.  Ericsson said it will close the purchase in the third quarter. The deal will give Ericsson a stronger presence in software and services and will fit nicely with Ericsson's previous acquisitions in the OSS and BSS space.  Just a few weeks ago Ericsson acquired Bangkok-based TeleOSS  Consulting, which gives it OSS and systems integration capabilities in Asia.

The deal also fits well with Ericsson's purchase of Telcordia, which it acquired in June 2011 for $1.15 billion. Clearly, Ericsson is moving beyond its core infrastructure products and strengthening its software business. 

Ericsson's strategy is quite different from competitor Nokia Siemens Networks, which sold its BSS unit to Toronto-based Redknee in March.

For more:
- see this WSJ article (sub. req.)
- see this FierceBroadbandWireless article

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