Ericsson Telephone Company (ERIC) recently announced its intention of acquiring Canadian software solutions company, ConceptWave, in an all cash transaction. Headquartered in Toronto, Canada, the company was incepted in 2000 and primarily develops innovative software solutions for telecom operators. ConceptWave's primary customers include leading telecom operators in the U.S., Latin America, Asia and Europe and Canada. Earlier, Ericcsson acquired Telchordia and emerged as one of the most comprehensive providers of (OSS/BSS) solutions, which is a key element in any operator's network. Now with the acquisition of ConceptWave, Ericcsson intends to expand its area of operations and business support systems (OSS/BSS) with the world-leading Order Management, which enables smooth handling and management of complex tasks, and Product Catalog solutions, a system that defines the components of a product.
The company's management stated that nowadays telecom operators face issues in offering flexible solutions with customized pricing to their clients. The company also mentioned about the ongoing shift in the business mix to a more personalization of services where customers prefer buying communication services that fully comply with their requirements.
In this regard, the acquisition of ConceptWave is a strategic move Ericsson's part as its cutting-edge solutions coupled with more than a decade of expertise adds considerable value to the existing portfolio of Ericsson.
Ericsson already boasts a leading position in its industry in the domain of charging and billing, serving about 1.7 billion customers. The acquisition of ConceptWave further strengthens this position as its products and solutions benefit telecom operator's assets through creation, implementation and automation of service fulfillment processes in order to provide better offerings.
Ericsson provides communications equipment, professional services and multimedia solutions to mobile and fixed networks operators worldwide. The company currently has a Zacks #3 Rank, which implies a short-term Hold rating on the stock.