* New estimated closing in the beginning of 2012 * Ericsson and Telcordia confident in the progress of the approval process
With approvals still outstanding from certain government authorities and as we are in the holiday season, the original estimate of closing by year-end is likely not probable.
Both companies continue to work diligently with the government authorities in order to close the acquisition as soon as possible. Our new estimate is in the beginning of 2012.
On June 14, 2011, Ericsson announced that it had entered into a merger agreement with Providence Equity Partners, LLC and Warburg Pincus to acquire 100 percent of the shares of Telcordia for USD 1.15 billion in an all cash transaction, on a cash and debt-free basis. The transaction includes approximately 2,600 employees and Telcordia's customer base.
Notes to editors:
Link to the press release from June 14, 2011, "Ericsson to acquire Telcordia":
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Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices.
Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 180 countries, more than 90,000 employees generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ New York.
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