Ericsson and ST Microelectronics announce the closing of the transaction to split up the joint venture, ST-Ericsson.
Effective August 2, 2013 Ericsson has taken on the design, development and sales of the LTE multimode thin modem solutions, including 2G, 3G and 4G interoperability. Approximately 1,800 employees and contractors have joined Ericsson.
ST has taken on the existing ST-Ericsson products other than LTE multimode thin modems, with the GNSS (Global Navigation Satellite System) connectivity solution sold to a third party. Approximately 1,000 employees have joined ST Microelectronics.
Douglas Gilstrap, Senior Vice President and Chief Strategist at Ericsson says that the company continues to see great value in the LTE multimode thin modems as they are an important part of their vision of 50 billion connected devices in a Networked Society.
Georges Penalver, Executive Vice President, Chief Strategy Officer at ST observes that the company is adding strong competencies in the areas of embedded processing, RF, analogue and power technologies, as well as in software and complex system integration to fuel growth in many of their product areas with significant business opportunities.