Ericsson's senior management team paid a visit to the Middle East region at the beginning of March on a whistle-stop tour to galvanise the vision for the company's new structure, which was announced January 1. Ericsson has been reorganised into three units - Networks, Services and Multimedia - and the technology supplier is keen to show its commitment to partnering with operators around the world.
"We have 24,000 employees worldwide in services," Hans Vestberg, executive vice president of Ericsson told
. "Technology and services are growing in the Middle East and Africa region and we want to be there to help continue this expansion," he added.
Ericsson recorded a strong financial performance for the 12 months to end-December, reporting net sales of SEK177.8 billion (US$25.5 billion) up 17% from the previous year. Operating income for the full year was up 8% to SEK35.8 billion, while the supplier's operating margin came in at 20.1%, down from 21.8% the previous year. Net income for the year amounted to SEK26.3 billion, up from SEK24.3 billion in 2006.
"I believe that IPTV will be an important part of multimedia in the future, and you see that is why we have bid for Tandberg, which has the codex for the technology," Vestberg said. As of March 23, Ericsson announced that in the voluntary public cash offer to acquire all outstanding shares in Tandberg Television, Ericsson had received acceptances and purchased shares representing more than 90% of Tandberg Television.
Ericsson said in a statement on that date that it intended to complete the voluntary public cash offer in accordance with the conditions in the offer document as soon as possible.
Assuming completion of the voluntary cash offer, Ericsson will, as soon as practically possible, proceed with a mandatory offer for the remaining outstanding shares in Tandberg Television.
With the majority of sales in cable/satellite and the growing telecoms business, Tandberg has built a strong client base with customers in more than 100 countries. The company has over 200 patents granted. The European and North American operations are headquartered in Southampton, UK and Atlanta, US.
Tandberg Television employs 870 people, including more than 370 video and software engineers. Tandberg's revenues in 2006 were US$350 million with a growth of 21%. EBITDA reached 21% in 2006. Since 1997, Tandberg Television has been listed on the Oslo Stock Exchange.
Upon completion of this transaction, Tandberg Television will become a wholly owned subsidiary of Ericsson. In combination with Ericsson's existing products the combined companies will be uniquely positioned in offering complete IPTV solutions.For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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