Ericsson and STMicroelectronics have announced the closing of the transaction for the split up of ST-Ericsson.
Ericsson has taken over the business related to LTE multimode thin modems which includes 2G, 3G and 4G interoperability. A total of approximately 1800 employees are going to be part of Ericsson.
Whereas ST has taken over the rest of the business except GNSS, which was sold to third party. A total of approximately 1000 employees have joined ST Microelectronics.
The close down of the remaining parts of ST-Ericsson has started and both parents are assuming equal funding of the wind-down activities.
Douglas Gilstrap, Senior Vice President and Chief Strategist at Ericsson said: “We welcome the team of about 1,800 modem-experts that join Ericsson. Ericsson continues to see great value in the LTE multimode thin modems as they are an important part of our vision of 50 billion connected devices in a Networked Society. The market potential is there and Ericsson will now focus on bringing the best modems to market, and work closely with customers to integrate them into their products.”
Georges Penalver, Executive Vice President, Chief Strategy Officer at ST said: “We have finalized the agreement fully on track to our plan, with minimized social impact and lower exit costs than anticipated. We welcome our new employees as we are adding strong competencies in the areas of embedded processing, RF, analog and power technologies, as well as in software and complex system integration, to fuel growth in many of our product areas where we have significant business opportunities”.