Acquisition of GDNT, an R&D and services company in China
Ericsson has on September 25th signed an agreement to acquire certain assets of the Guangdong Nortel Telecommunication Equipment Company Ltd (GDNT) at the price of USD 50 million. GDNT is a leading research, development and manufacturing company based in China and an important supplier to Ericsson following the acquisitions of the CDMA and GSM businesses of Nortel. The transaction also includes R&D facilities, manufacturing facilities as well as support and customer service in China. Some 1,100 employees, including approximately 550 R&D engineers will be integrated in to the Ericsson group over the coming months. "The acquisition greatly complements our existing R&D, manufacturing and services capabilities in the region," said Mats H Olsson, President of Ericsson China & North East Asia. "It will no doubt allow us to provide even better support to our customers across the region who are serving one of the largest GSM and CDMA subscriber bases in the world.