Electronics Production | June 20, 2005
Ericsson acquires Norwegian AXXESSIT
Ericsson has made a voluntary cash offer to acquire 100% of the outstanding shares of AXXESSIT ASA, a Norwegian based advanced technology company that develops, produces and markets integrated access devices and multi-service provisioning platforms for next generation access and metro networks.
Ericsson will offer NOK 28.50 in cash per AXXESSIT share, corresponding to a premium of 43.9% per share. The value of the offer totals NOK 330 million (USD 51 million). AXXESSIT's products strengthen Ericsson's offering in the Ethernet/Metro segment. The Board of AXXESSIT recommends the offer and the largest shareholders are positive to the offer. The acquisition will improve Ericsson's prospects for sales growth in this segment. However, marginal effects on Ericsson's key ratios for 2005. Sivert Bergman, Vice President of Ericsson comments; "This acquisition provides us with a very interesting product suite within the Ethernet/Metro segment, which will enable us to improve our offering to telecom operators all over the world. Through the acquisition Ericsson will also get access to high skilled R&D resources with long experience in this future growth segment." Comment from the chairman of AXXESSIT, Nils Erik Skarsgård; "We know Ericsson to be an excellent company and a first class world player in the telecom equipment industry and are of the opinion that Ericsson represents a strong long-term owner for AXXESSIT. We recommend to the shareholders to accept the offer subject to not receiving a higher competing offer for their shares."