Nordic Business Report-April 11, 2006-Teleca AB acquires Russian consulting company Telma
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Swedish IT consulting company Teleca AB said on Tuesday (11 April) that it has acquired Russian consulting company Telma.
The consideration comprises a fixed payment of USD22m and additional payments of up to USD35m based on future performance.
Telma provides consulting services within mobile phone development and its customers include Motorola, Freescale, Esmertec and McAfee. The company, based Nizhni Novgorod, has 825 employees and reported net revenues of approximately USD26m in 2005.
Teleca said that the acquisition would provide it with a base for its low-cost activities in mobile phone development.
"For Teleca to remain a global leading player in mobile phone software it's essential to be able to offer our customers a substantial low-cost element. The Telma acquisition means that 36% of Teleca Mobile employees will be in low-cost countries, where growth is expected to be higher than in high-cost countries," said Dag Sundstrom, CEO of Teleca.
One US dollar (USD) is worth approximately 0.57 British pounds (GBP).
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