Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Ericsson (ERIC - Analyst Report) recently acquired the EVDO business of Airvana Network Solutions. The software enables data transmission in CDMA wireless networks. The deal was structured as a stock purchase, but other financial details were not disclosed.

The acquisition is a strategic move by Ericsson to strengthen its CDMA line of business. The acquisition also supports the vertical integration strategy of Ericsson for key CDMA products; thereby augmenting its product portfolio and having greater ability to better respond to its customers.

Incidentally, Airvana had filed a lawsuit against Ericsson in Feb 2012. Airvana had accused Ericsson of violating the terms of a deal that required Ericsson to ship Airvana-designed products with Airvana's software and pay royalties. However, post this acquisition both companies will withdraw their allegations.

Ericsson has been strategically acquiring companies to strengthen its core areas, and thus have a better market share. In addition, through these acquisitions, Ericsson intends to serve its customers better across all areas of telecom networks.

Ericsson recently completed the acquisition of Microsoft Corp’s (MSFT - Analyst Report) Mediaroom business and became the leading provider of IPTV (Internet Protocol TV) and multi-screen solutions. The acquisition of the TV business comes at an opportune time when the global IPTV market is expected to cater to 76 million subscribers in 2013. 

Further, the IPTV market is expected to generate revenues of $32 billion.  Ericsson expects the IPTV market to have 105 million subscribers with revenues of $45 billion by 2015.

Ericsson currently has a Zacks Rank #3 (Hold). Other wireless equipment companies worth a look are Ubiquiti Networks Inc. (UBNT - Snapshot Report) and Tellabs Inc. . Ubiquiti Networks has a Zacks Rank #1 (Strong Buy), while Tellabs Inc. carries a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%