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

Related articles:
Ericsson posts weak Q2 results, but looks to China and Europe for growth
Ericsson touts 1B subscribers covered by managed services deals
Ericsson shines in North America, but restructuring nails earnings
Nokia Siemens: Business as usual for now
Ericsson CEO: 90% of network traffic will be video
Ericsson's Q4 turnaround driven by booming N. American sales
Redknee strikes deal to acquire Nokia Siemens Networks' BSS unit
Ericsson scoops up OSS/BSS vendor Telcordia for $1.15B

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