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Ericsson buys Devoteam IT unit
22 January 2013
Devoteam telecom and media unit in France with 400 staff joins Ericsson including TV SmartVision operations
telecoms and media
Ericsson is continuing its acquisitive habit with the purchase
of the IT services capabilities, along with 400 staff, from
French group Devoteam. The two companies have not given a price
for the transaction.
Devoteam is an IT consulting group with a revenue in 2011 of
€528 million and just under 5,000 employees. The
Paris-based company says it is selling the unit so it can focus
on "high-value niche positions on seven domains", which include
telecoms network transformation.
Ericsson said that the new acquisition has skills in
"consulting and systems integration for operations and business
support systems, service delivery platforms and applications,
IP Multimedia Subsystems, IP and radio networks and TV. The
acquisition complements Ericsson's existing strengths in these
fields, both in the operator and media segments".
Magnus Mandersson, Ericsson's executive vice president and head
of the global services business unit, said the move was
"further proof of Ericsson's commitment to act as the partner
of choice for the business transformation currently taking
place within the telecommunications industry".
Derek Nutley, telecoms director at Devoteam, said: "Ericsson is
a key business partner of Devoteam - notably in the UK and
Mediterranean countries - and we hope that this transaction
will further strengthen our relationship."
Devoteam said the unit represents 7% of its global turnover,
though telecoms and media as a whole accounts for 30% of the
company's business, with customers including BT, Deutsche
Telekom, KPN, Megafon, MTS, SFR, Swisscom, Telecom Italia and
Telefónica. The deal is expected to be completed by the
beginning of April 2013.
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