Ericsson today announced a deal to acquire 100 percent of Telcordia, an OSS/BSS vendor, in a deal worth US$1.15 billion. In a statement, Hans Vestberg, president and CEO of the Swedish infrastructure giant, said: “Telcordia brings very skilled people and knowledge, a large business in North America and other markets, as well as a good multi vendor product portfolio.” Telcordia had revenue of US$739 million in the year to 31 January 2011, and has more than 2,600 employees. The transaction is expected to close in the fourth quarter of 2011.

Ericsson is acquiring the company from private equity firms Providence Equity Partners and Warburg Pincus. It was reported that the owners were looking to offload the business earlier this year, with the price Ericsson is now paying in-line with earlier expectations. Other mooted buyers for Telcordia included Amdocs, Oracle and HP. Providence and Warburg bought the unit from Science Applications International Corporation (SAIC) in 2005, paying US$1.35 billion, with the acquisition described as a “sideways” move – “not a massive money-loser as were many deals struck later in the decade, but clearly one that fell short of expectations.”