Ericsson has signed an agreement with Chinese IT vendor Sunrise Technology to acquire its telecom business.
Sunrise Technology will continue to exist as a separate entity in China, but will no longer be operating in the telecom space. The 1,000 employees involved in the deal will be joining Ericsson by the end of the second quarter, Ericsson said.
Magnus Mandersson, executive vice president and head of the Ericsson's global services business unit, said in a statement that China is currently the largest mobile market in terms of the number of subscriptions with 1.3 billion. However, most of the telecom operators in the country are "at the beginning of their IT transformation journeys" and will need to replace legacy IT systems with next-generation products in the near future, he said.
With the acquisition of the Sunrise telecom business, Ericsson boosts its ability to provide IT transformations in China, Mandersson added.
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