Ericsson To Sell Off Its Sweden Managed Services Unit To Transtema

Ericsson is in the process of selling off its field services business unit in Sweden to Transtema Group, a local firm operating in similar domain. Ericsson’s field services business, Ericsson Local Services AB or LSS, offers managed services operations and maintenance of fixed and mobile networks in Sweden.

This business unit of Ericsson has around 700 employees.

The Swedish major has signed an agreement with Transtema in this regard. 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 company said this divestment is in line with Ericsson’s business strategy, a key part of which is Managed Services and operating networks on behalf of our customers. The divestment of LSS is part of executing on that strategy as Ericsson will no longer sell new standalone field services projects.

Per Narvinger, Head of Customer Unit Northern & Central Europe, Market Area Europe & Latin America, Ericsson, says: “Ericsson Local Services is a market leader in field service operations in Sweden with a skilled workforce of approximately 700 employees across the country. They deliver very good support to our customers, and we believe Transtema has an excellent opportunity to continue to develop the field service operations while also executing on existing customer commitments. Together we will ensure a quick and smooth transition and a good relationship.”

Magnus Johansson, CEO Transtema Group says “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. Our goal is to continue to grow the service business for telecom networks. This is in line with our ambition to develop our operations in Sweden and internationally. We look forward to welcome and on-board all LSS employees as soon as the deal is closed.”

The transaction is expected to close in the third quarter of calendar year 2018 and is subject to customary closing conditions, including regulatory approvals.

Ericsson manages the Network and IT operations and Network Design and Optimization for customers in over 100 countries, providing long lasting cost-efficient performance through smart automation, analytics and business practice.

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