Ericsson acquires Elcoteq in Tallinn for the preservation of production facilities in Estonia

The company Ericsson has signed an agreement with Elcoteq, supplier Ericsson, on the acquisition of the company's production facilities in Estonia. Transaction price is 30 million euros for the acquisition of logistics and support of some assets. The agreement also includes the transfer of approximately 1200 employees. In doing so, Ericsson maintains its production facilities in Estonia.

Ericsson Solution is the result of the plan Elcoteq to restructure and consolidate its production in Europe. Elcoteq company supplies components of wireless base stations for 2G and 3G from Ericsson, as well as fiber optics and transmitting equipment.

More than ten years ago the company passed Ericsson to outsource its mass production. With this strategy the company followed to this day.

The agreement includes the transfer of a lease of buildings.

Completion of the transaction is expected during 2009, this will need to obtain official permission from the Antimonopoly Committee.