Ericsson sells product development operations

Ericsson has today signed an agreement with TietoEnator to sell its development operations in Karlstad, Lulea, Umea, and Skelleftea in Sweden for SEK 500 million.

Ericsson has today signed an agreement with TietoEnator to sell its development operations in Karlstad, Lulea, Umea, and Skelleftea in Sweden.

TietoEnator will take over approximately 860 employees involved in software development for mobile and fixed systems. The value of the sale is approximately SEK 500 million.

‘Ericsson sees TietoEnator as an important future supplier and strategic partner to the company,’ said Per-Arne Sandström, Chief Operating Officer of Ericsson. ‘The sale is another step in our overall strategy to consolidate and streamline our development activities.’

‘Telecom is a long term growth market and it is of great strategic importance to us to establish this partnership,’ said Ake Plyhm, deputy CEO of TietoEnator. ‘Ericsson is definitely an important partner to us.’

The transfer of Ericsson’s development operations to TietoEnator will take place in the beginning of November 2002, pending Swedish Competition Authority approval.

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