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Ericsson To Acquire Telcocell

|Includes:LM Ericsson Telephone Company (ERIC)

Ericsson ERIC has announced its intention to acquire Canada-based Telcocell,
a consulting and systems integration company specializing in
Business Support Systems (BSS).

The acquisition complements Ericsson's consulting and systems integration offering to telecom and cable customers in North America, Western Europe and Latin America, and is expected to close in September 2013, subject to customary closing conditions.

Telcocell was founded in 2008 and is privately held by three managing partner employees.
The company provides consulting services to the telecommunications and cable industry, specializing in BSS. Telcocell is headquartered in Toronto, Canada, and also has sales and delivery operations in the US, Luxembourg and Brazil. Telcocell also has a development center in Ramallah, Palestine, and a testing and Q&A center in Bangalore, India.

The Telecom giant will benefit from Telcocell's consulting and systems integration experience in converged charging, custom development, quality assurance and production support for BSS. The acquisition will further strengthen the company's customer relations and BSS transformation capabilities.

Ericsson's well-established services offerings and broad software portfolio supports customers in transforming their operations and IT environments and improving the user experience as well as increase efficiency and enable service innovation. The company's consulting and systems integration professionals deliver more than 1,500 consulting, systems integration and learning services projects in multi-vendor and multi-technology environments each year.

There is no doubt that growing on the Services grounds will bring to Ericsson better margins.

Disclosure: I am long ERIC.

Stocks: ERIC