"Ericsson has entered into an agreement to acquire 100 per cent of the shares in the privately-held Canadian Wi-Fi company BelAir Networks...By integrating BelAir Networks' market-leading products and competence into Ericsson's existing radio portfolio, we will be able to do this more quickly," said Ericsson CEO Hans Vestberg.
The acquisition is expected to close during the first half of 2012, subject to customary closing conditions. The terms of the transaction were not disclosed.
Meanwhile, the acquisition is part of the Ericsson's heterogeneous network (hetnet) strategy to improve the mobile broadband experience by managing the co-existence of mobile technologies and Wi-Fi. Also, the acquisition comes in line with the Ericsson launch of Network Integrated Wi-Fi solution in September 2011.
Following the acquisition, Ericsson will acquire a strong carrier grade Wi-Fi portfolio, technological expertise, IPR, and established customer contracts and relationships.
Besides, approximately 120 employees, working with BelAir, would be included in the Ericsson's global organization.
"We welcome 120 highly skilled people into the company," added Vestberg.
Through the acquisition, BelAir Networks has achieved industry leadership with its unique portfolio of carrier-grade Wi-Fi.
"This transaction is a natural step in the continued development of BelAir Networks and we believe that Ericsson presents a strategic and cultural fit," said BelAir Networks CEO Bernard Herscovich.
Dion Global Solutions Ltd