Ericsson today entered an agreement to acquire Telenor Connexion's M2M (machine-to-machine) technology platform. The acquisition follows Ericsson's ambition to drive the market for M2M communication, adding valuable technology and know-how from eleven employees that will be transferred as part of the deal.
Telenor Connexion is wholly owned by Telenor Group, one of the world's major mobile operators with 203 million mobile subscribers.
Telenor Connexion also becomes the first customer to Ericsson on its Device Connection Platform, a service launched during the Mobile World Congress in February. The Device Connection Platform offers telecom operators a way to set up tailored M2M services for enterprise customers and is brought to market with a 'software as a service' business model, providing a low initial investment in technology and a fast time to market.
Mobile connectivity is used in several M2M solutions such as smart meters and fleet management and is useful in all products with software, which can be easily upgraded if they were connected to a mobile network.
"M2M solutions have gained momentum and the market is much more mature compared to when we formed Telenor Connexion in 2008," Per Simonsen, CEO at Telenor Connexion, said. "Utilizing our offering on Ericsson's platform means that we can focus our resources on value adding services, improved and customized products, and partnerships to further strengthen our position as the leading provider of premium M2M solutions for business and life critical applications."
"Telenor Connexion's M2M technology platform complements our service and will improve our offering, adding the know-how of the pioneers in this area," Magnus Furustam, Vice President, Head of Core & IMS at Ericsson, said. "Our ambition is to grow the M2M market and offer our customers a solution that they can quickly use on the market for a low initial investment."
The acquisition includes Telenor Connexion's M2M technology platform and transfer of eleven employees who will continue to work with development of the service offering provided on Ericsson's Device Connection Platform.
The acquisition is not subject to approval from authorities but to contractual agreements before closing. No financial details about acquiring the assets have been announced.