- Ericsson field services operation in Sweden, Ericsson Local Services AB, to be
divested
- Transtema Group AB acquires all assets and continues the
operation with the existing approximately 700 employees
- Divestment in line with Ericsson's business strategy
STOCKHOLM, July 11, 2018 /PRNewswire/ --Ericsson (NASDAQ:
ERIC) has signed an agreement with the Swedish company Transtema
Group AB to divest Ericsson Local Services AB (LSS), a subsidiary
of Ericsson supplying field service operations and maintenance of
fixed and mobile networks in Sweden.
Ericsson Local Services AB is a market leader in field services
in Sweden. LSS builds and
maintains network infrastructure and delivers services in all areas
of Sweden's field service
operations market.
Under the agreement, all operations and assets of LSS will be
transferred to Transtema ownership. LSS will continue as a legal
entity in Transtema Group. As a result of the transaction, Ericsson
becomes a minority shareholder and will be represented on the Board
of Directors of Transtema Group.
This divestment is in line with Ericsson's business
strategy, a key part of which is Managed Services and
operating networks on behalf of our customers. The divestment of
LSS is part of executing on that strategy as Ericsson will no
longer sell new standalone field services projects.
Per Narvinger, Head of Customer Unit Northern & Central Europe, Market Area Europe &
Latin America, Ericsson, says:
"Ericsson Local Services is a market leader in field service
operations in Sweden with a
skilled workforce of approximately 700 employees across the
country. They deliver very good support to our customers, and we
believe Transtema has an excellent opportunity to continue to
develop the field service operations while also executing on
existing customer commitments. Together we will ensure a quick and
smooth transition and a good relationship."
Magnus Johansson, CEO Transtema
Group says "We intend to operate LSS as a separate legal entity
within Transtema Group. With LSS experience, competence and
customer relations in Sweden they
will become the backbone of our field service operations business.
Our goal is to continue to grow the service business for telecom
networks. This is in line with our ambition to develop our
operations in Sweden and
internationally. We look forward to welcome and on-board all LSS
employees as soon as the deal is closed."
The transaction is expected to close in the third quarter of
calendar year 2018 and is subject to customary closing conditions,
including regulatory approvals.
Ericsson manages the Network and IT operations and Network
Design and Optimization for customers in over 100 countries,
providing long lasting cost-efficient performance through smart
automation, analytics and business practice.
About Transtema Group AB
Transtema Group AB is a market leader in communication
infrastructure in Sweden,
constructing and building communication networks as well as
designing and building active communication equipment for
communication providers, network operators, public sector entities,
power companies and large corporations in Sweden. Transtema Group AB is listed at Nasdaq
First North under the ticker TRANS. Erik Penser Bank is Certified
Adviser to Transtema Group AB
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About Ericsson
Ericsson enables communications service providers to capture the
full value of connectivity. The company's portfolio spans Networks,
Digital Services, Managed Services, and Emerging Business and is
designed to help our customers go digital, increase efficiency and
find new revenue streams. Ericsson's investments in innovation have
delivered the benefits of telephony and mobile broadband to
billions of people around the world. The Ericsson stock is listed
on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
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