Ericsson has announced on Monday that it is acquiring the antenna and filters division of Germany’s Kathrein.
The move by Swedish mobile network equipment maker to buy the division of German firm is part of an effort to boost its 5G product portfolio for growing demand of antenna technology.
In its statement, Ericsson told that the business it is acquiring had generated revenue of about 270 million euro ($306 million) in 2018, excluding the revenue generated by doing business with Ericsson, and employs nearly 4,000 staff.
With this strategically very important acquisition, Ericsson’s presence will initially become stronger in the 4G networks and that will eventually strengthen its presence in the 5G, Borje Ekholm, Ericsson Chief Executive, told Reuters during an interview at the Mobile World Congress in Barcelona.
With number of active antennas growing with their use in fifth-generation (5G) communication networks and enhancing integration of antennas and radio to support that new technology, dependence of mobile networks on antenna technology have become greater than before, said Ericsson.
The 5G networks are ready to be rolling out on massive levels and this require antenna technology to develop such products which could provide capacity, performance and coverage to match the needs of that powerful technology of 5G, it said.
Ericsson is the world’s second largest equipment provider for mobile networks with China’s Huawei ahead of it and Finland’s Nokia trailing on the third place.
Ericsson also said that the acquisition will not only broadens its antenna and filter business but will also make it more competent to evolve in advancement of radio network products.
Ericsson and Kethrein agreed not to disclose the amount involved in the acquisition process, and are expecting to close the deal in third quarter of this year subject to customary conditions and approvals from the regulators.