Ericsson Closes on Marconi Purchases

Ericsson yesterday closed on its $2.1 billion purchase of Marconi Corp. plc's telecommunications business.

Ericsson last October said it planned to buy parts of Marconi's telecommunications business it deemed “strategically important,” including the optical networking business; the broadband and fixed radio access network business; the softswitch business; the data networking equipment and services businesses; certain telecommunications services activities; and the Marconi trademark, associated brand names and intellectual property rights.

"The Marconi businesses are an excellent fit for Ericsson and we are delighted to welcome about 6,660 Marconi employees to Ericsson,” said Carl-Henric Svanberg, president and CEO of Ericsson, in a news release. “This is a powerful combination that will bring value to Ericsson as well as our customers who will substantially benefit from the combination of the two companies."

The acquired businesses are to be consolidated into Ericsson's accounts starting with the first quarter of 2006.

Ericsson www.ericsson.com

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