Ericsson (ERIC) Wednesday announced that it has signed an agreement to divest Ericsson Local Services AB or LSS in Sweden to Swedish communication infrastructure company Transtema Group AB.
LSS, with approximately 700 employees, is a subsidiary of Ericsson, supplying field service operations and maintenance of fixed and mobile networks in Sweden.
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.
The transaction is expected to close in the third quarter of calendar year 2018, subject to customary closing conditions, including regulatory approvals.
Ericsson said the divestment is in line with its business strategy, as the company will no longer sell new standalone field services projects.
Magnus Johansson, CEO Transtema Group said, “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.”
by RTTNews Staff Writer
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