The burgeoning Internet of Things (IoT) economy has claimed another. Ericsson is set to acquire U.S.-based MetraTech Corp. in an effort to strengthen the company’s IoT and Everything as a Service (Xaas) business.
Ericsson said the acquisition would enable new revenue opportunities and global commerce driven by both the rising IoT business model and further the Stockholm-based company’s billing and commerce platform as well as expand into the U.S. market.
While no financial details of the transaction were given, Ericsson will absorb all 140 MetraTech employees with the acquisition expected to be completed at the end of the third quarter.
Per Borgklint, senior vice president and head of business unit support solutions for Ericsson, said in a statement that in a networked society technology companies must “quickly support new revenue models and shift strategies as fast as customer and partner needs evolve.” He added that MetraTech’s products strengthens Ericsson’s “OSS and BSS portfolio and bill capabilities across a range of sectors” and allows the company to “support a world with increasingly more connections.”