Ericsson and Austrian company Kapsch CarrierCom will buy the assets of Nortel’s carrier networks division for a combined $103 million.
Following the latest auction for the Canadian vendor’s assets, Ericsson pay $70 million for the North American GSM business and Kapsch CarrierCom will lay out $33 million for most of the remaining GSM assets.
The transaction would have a positive effect on Ericsson's earnings within a year after closing, Ericsson said.
“Along with our recent acquisition of Nortel's CDMA and LTE assets, the transaction emphasizes Ericsson's commitment to the North American market," said Ericsson's incoming CEO Hans Vestberg.
Last week Ericsson completed the acquisition of Nortel's CDMA and LTE, assets in North America.
The acquisition includes the transfer of critical GSM business with US operators including AT&T and T-Mobile, which expands its North American footprint.
Ericsson said it would also take on 350 Nortel employees.