Ericsson is buying Telenor Connexion’s M2M technology platform for an undisclosed sum. Technology and 11 employees will be transferred as part of the deal.
Telenor Connexion is wholly owned by Telenor Group, a mobile operator with 203 million mobile subscribers. Telenor Connexion also becomes the first customer for Ericsson on its device connection platform, a service launched during the Mobile World Congress in February.
The platform provides telecoms operators with a way to set up tailored M2M services for enterprise customers and is brought to market with a software-as-a-service business model, providing a low initial investment in technology and a fast time to market.
Mobile connectivity is used in several M2M products such as smart meters and fleet management and is useful in all products with software, which can be easily upgraded if they were connected to a mobile network.
“M2M solutions have gained momentum and the market is much more mature compared to when we formed Telenor Connexion in 2008,” said Per Simonsen, CEO at Telenor Connexion. “Utilising our offering on Ericsson’s platform means that we can focus our resources on value adding services, improved and customised products and partnerships to further strengthen our position as the leading provider of premium M2M solutions for business and life critical applications.”
The acquisition is not subject to approval from authorities but to contractual agreements before closing. No financial details about acquiring the assets have been announced.
“Telenor Connexion’s M2M technology platform complements our service and will improve our offering, adding the know-how of the pioneers in this area,” said Magnus Furustam (pictured), vice president and head of core and IMS at Ericsson.
“Our ambition is to grow the M2M market and offer our customers a solution that they can quickly use on the market for a low initial investment.”
Macario Namie, senior director of marketing at Jasper Wireless, said of the deal: “The acquisition of Telenor Connexion’s platform appears to be in line with Ericsson’s strategy of developing its managed services business. The Ericsson statement suggests that Telenor Connexion’s platform will be discarded in place of Ericsson’s internally developed platform, seeking to claim some early proof points. There is nobody that questions Ericsson’s ability to sell networking equipment in a managed service environment – they have clearly proven successful at this. They understand operator technology extremely well.”
But he said he believed the reason why an operator would seek a partner should not be just about operator technology.
“It is about bringing a deep understanding of the enterprise OEM that is seeking to build and scale a connected device business across many operators and countries,” he said. “This comprehensive knowledge of the global enterprise OEM – their needs, their language and their challenges – is what sets Jasper apart.”