Ericsson buys Devoteam IT unit

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Devoteam telecom and media unit in France with 400 staff joins Ericsson including TV SmartVision operations

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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