Ericsson bids for Netwise

Telecom giant Ericsson has made a cash offer to buy Netwise in a bid worth 300 million kronor.

Ericsson is offering 60 kronor per share, a 29 percent premium, for the Swedish software maker, according to press release on Monday.

Netwise’s Board of Directors has approved the offer.

“Netwise is proud to have received this offer from Ericsson,” said Yngve Andersson, chairman of the Netwise Board of Directors.

“We see this offer as a confirmation that, with highly competent employees, we have succeeded in developing competitive products and as well as position them in an international market even outside Scandinavia.

Through Ericsson, Netwise now has the possibility to reach an international market even faster”.

According to Ericsson, some 76 percent of those with voting rights at Netwise said they approved the deal.


Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.