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Swedish telecoms equipment provider Ericsson (Nasdaq: ERIC) has agreed to buy OSS/BSS solutions provider Telcordia for US$1.15bn in cash, Ericsson said in a statement.
Ericsson said that it would take on Telcordia's 2,600 employees.
"The importance of operations and business support systems will continue to grow as more and more devices are connected, services become mobile and new business models for mobile broadband are introduced," Ericsson CEO Hans Vestberg said in the statement.
Ericsson said it expected the transaction to close in the fourth quarter of this year, with full effect from the first quarter of 2012.
OSS/BSS is a growing market driven by demand for business efficiency, innovation and high-quality user experience. In 2010, the global market for software and systems integration was valued at about US$35bn and is expected to show a CAGR of 6-8% from 2010-13, Ericsson said.
In addition, there is an attractive market for outsourced and hosted managed services, growing in the same range, the company added.