Ericsson to buy Telcordia in deal worth $1.15 billion  Ericsson, the telecommunications giant, said it will buy Telcordia for $1.15 billion, the New York Times reports.

Ericsson has set out to increase its telecommunications software division over the past year, and the company said Telcordia was strategically chosen because of its superior products. Telcordia, which is owned by a private equity company, is a remnant of the AT&T breakup that occurred in 1999; it had revenue of $739 million in 2010.

Providence Equity Partners and Warburg Pincus bought Telcordia in 2005 from Science Applications International Corporation. According to Ericsson chief executive Hans Vestberg, the deal will enable Ericsson to expand its telecommunications business through a business that can be easily integrated into the company's overall business model.

"The importance of operations and business support systems will continue to grow as more and more devices are connected, services become mobile and new business models for mobile broadband are introduced," Vestberg said in a statement.

Telcordia chief executive Mark Greenquist affirmed that the deal was ideal and would result in improved products that merged the two technologies the companies currently produce. He also said it would benefit consumers by offering new services and expanded capabilities.
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