Ericsson has paid $9.5 milllion for Australian systems integration company TUSC Computer Systems, a subsidiary of ASX-listed Allied Technologies Group.
The acquisition would give the local operation of the Swedish telecommunications giant a foothold in the utilities sector. All 80 TUSC staff would be retained.
Up until now, Ericsson had no customers in the utility market, according to company spokesperson Elizabeth Middleton.
The acquisition would see it acquire a long list of TUSC utility clients including Energex, Integral Energy, Mobil, Origin Energy, and SA Water.
TUSC specialises in system integration for telecommunications, utilities and enterprises. Ericsson said in a statement that the acquisition would strengthen its telecommunications services and focus areas of systems integration, telecom management and operational support systems (OSS).
Hans Vestberg, executive VP and head of business unit global services at Ericsson said in a statement that the acquisition quickly expands the “capacity and competence” in Ericsson’s systems integration business.
“We are also very excited to enter into network management solutions for utilities infrastructure,” Vestberg said.
Allied paid $6.7 million for TUSC in late August.
The deal follows Ericsson’s A$2.82 billion purchase of British telecoms equipment maker Marconi. Ericsson is the world’s biggest supplier of mobile telecommunication systems.
Ericsson buys TUSC
By Byron Connolly on Nov 25, 2005 12:25PM