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Cable Technology Feature Article

January 21, 2013

Ericsson Buys Media & TV Consulting Specialist

By Tara Seals, TMCnet Contributor

Looking to beef up its consulting and systems integration capabilities in the enablement arena, No. 1 worldwide telecom vendor Ericsson (News - Alert) has acquired the telecom IT business of French professional services company Devoteam Telecom & Media, along with its TV SmartVision operations.

The systems integrator specializes in OSS/BSS, IMS and service delivery platforms and applications. It also offers expertise in software for IP and radio networks and TV. Ericsson intends to use that expertise to bolster its value proposition for both its operator and media segments.

"Acquiring activities of Devoteam adds unique expertise in complex, strategic and technical consulting engagements that will enable us to immediately enhance the value that we bring to our customers," said Magnus Mandersson, Ericsson's executive vice president and head of business unit global services. "It is further proof of Ericsson's commitment to act as the partner of choice for the business transformation currently taking place within the telecommunications industry."

The deal will see about 400 IT services professionals based in France join Ericsson from the acquisition. For Devoteam’s part, the move to divest part of its business will allow it to refocus its portfolio on cloud transformation, mobile and digital enablement and other arenas.

"This transaction fits with Devoteam's 2015 strategic plan,” said Derek Nutley, telecoms director at Devoteam. “It will allow us to focus more on innovation around the Devoteam's value proposition. Ericsson is a key business partner of Devoteam - notably in U.K. and Mediterranean countries - and we hope that this transaction will further strengthen our relationship. I am convinced that the teams of Devoteam Telecom & Media in France will benefit from Ericsson's end-to-end know-how, scale and global presence."

Meanwhile, Ericsson will focus on helping customers transform their operations and IT environments and improve the user experience, increase efficiency and enable service innovation. The acquisition enhances Ericsson’s already prodigious professional services footprint: it has 12,000 consulting and systems integration professionals who deliver more than 1,500 consulting, systems integration and learning services projects in multivendor and multi-technology environments each year.

The completion of the acquisition is subject to consultation and customary closing conditions. It is expected to take place by the beginning of the second quarter.

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Edited by Brooke Neuman

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