Ericsson enterprise arm becomes network reseller

Ericsson has spawned a reselling giant by selling a majority of its enterprise business to venture capital firm Apax Ventures for...

Ericsson has spawned a reselling giant by selling a majority of its enterprise business to venture capital firm Apax Ventures for $480m (£328m).

The new entity, Enterprise Solutions, will be an international network reseller with offices in 18 countries and 2,400 employees.

The deal, which values the business at $576m, enables Enterprise Solutions to partner with rival vendors and become a multivendor reseller. But Ericsson, which will retain 20 per cent ownership, will remain its most prominent supplier.

The direct sales division had already struck deals with Extreme Networks and Rockwell to supply their networking equipment and it is already a Cisco gold certified partner.

The new company will manage customers including Global Crossing, the Metropolitan Police, the BBC and the Crown Prosecution Service.

Joanne James, marketing director of Enterprise Solutions confirmed it is talking to a number of undisclosed vendors to supply networking equipment to its existing customer base.

James also said that the deal would not affect Ericsson’s relationship with other resellers. She said: "Most of the customers within Enterprise Solutions are in the medium to high end sector. Our existing reseller partners focus is mainly in the SME sector."

This was last published in March 2001

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