Tuesday, 26 February 2008

Ericsson to Divest Enterprise PBX Solutions

Communications colossus Ericsson said last week that it has decided to divest its enterprise PBX solutions business to Astra Technologies. The agreement involves transfer of approximately 630 employees of which some 360 are based...

Communications colossus Ericsson said last week that it has decided to divest its enterprise PBX solutions business to Astra Technologies.

The agreement involves transfer of approximately 630 employees of which some 360 are based in Sweden and once it is complete in April 2008, Ericsson said that it will start focusing on providing its broad portfolio of enterprise applications directly to operators and service providers.

Ericsson’s enterprise PBX solutions product portfolio includes communications solutions for enterprises of all sizes, mobility solutions, telephone terminals and services. Sales in 2007 amounted to approximately SEK 3 billion.

Ericsson said it has a strategic focus on telecommunication operators and service providers, hence considers its enterprise PBX solutions business to be outside its core focus. In addition, the enterprise communications industry is becoming increasingly global and is clearly gravitating toward consolidation. Therefore, Ericsson believes that the enterprise PBX solutions will add significant competence and value to Aastra Technologies, adding leading products and a significant customer base for PBX solutions. This will also be a positive step for Ericsson’s enterprise customers, partners and employees, combining Ericsson’s and Aastra Technologies’ leading product portfolios.

Executing on the strategy for the multimedia business, Ericsson will focus on providing its broad portfolio of enterprise applications directly to operators and service providers. Strategic products from the acquisition of Netwise will also remain within Ericsson.

The agreement is subject to approvals from relevant competition authorities.