Ericsson has signed an agreement with the Swedish company Transtema Group to divest Ericsson Local Services AB (LSS), a subsidiary of Ericsson supplying field service operations and maintenance of fixed and mobile networks in Sweden.
Ericsson Local Services is a market leader in field services in Sweden. LSS builds and maintains network infrastructure and delivers services in all areas of Sweden’s field service operations market.
Under the agreement, all operations and assets along with 700 employees of LSS will be transferred to Transtema ownership. As a result of the transaction, Ericsson becomes a minority shareholder and will be represented on the Board of Directors of Transtema Group.
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 said, “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 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. 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 2018 and is subject to customary closing conditions, including regulatory approvals.