Ericsson, the grand old Swedish maker of telecommunications equipment, has acquired Nortel’s take in South Korean joint venture LG-Nortel. Ericsson will pay $242 million in cash for Nortel’s slice of the cake. The joint venture will be called LG-Ericsson, should South Korea’s regulatory bodies approve of the deal.
Ericsson claims the “acquisition will significantly expand” the company’s market penetration in Korea and that LG-Ericsson “will become one of the major telecom players in Korea.” Apparently the joint venture has standing agreements with operators Korea Telecom, LG Telecom and SK Telecom.
LG-Nortel was established back in 2005 in order to make and sell WCDMA, CDMA and LTE systems to South Korean operators. The joint venture raked in sales worth $650 million and has 1.300 employees. Ericsson expects its investment will add to its bottom line one year later.