The acquisition is set to enhance Ericsson’s IT service capabilities in China with approximately 1,000 employees joining Ericsson by the end of the second quarter of 2015.
If the agreement is approved, Ericsson will bolster its portfolio in IT consulting, systems integration for charging and billing systems, customer relationship management as well as business intelligence and analytics solutions.
"China is the world's biggest mobile market in terms of number of subscriptions, with 1.285 billion. Most of the country's telecoms operators are at the beginning of their IT transformation journeys, and will soon replace their legacy IT systems with next-generation solutions that will enable them to launch digital offerings,” said Magnus Mandersson, vice president of Ericsson.
Sunrise Technology will remain a separate entity, and will continue to serve customers in sectors other than telecoms. "The acquisition of Sunrise Technology's telecoms business will boost our ability to serve mobile operators' IT transformation needs in China,” said Mandersson.
The move follows Ericsson’s announcement last week that it will be cutting 2,200 jobs across Sweden mainly in R&D and supply to reduce costs.
Last month, Ericsson made a similar acquisition when it purchased the assets of TimelessMIND, a Canada-based consulting and systems integration company specialising in OSS/BSS.
