Ericsson to Buy ACC for $285 Million

Bloomberg News

Ericsson agreed to pay $285 million in cash for Santa Barbara-based Advanced Computer Communication as the Swedish mobile phone maker moves to bolster its Internet communications business. Ericsson will buy the 65% ACC stake held by Canadian phone equipment maker Newbridge Networks Corp. and the remainder from more than 400 minority shareholders. Newbridge will continue to work on research and development with ACC, as well as make and sell its products. Phone equipment makers Ericsson and Northern Telecom Ltd. are jostling to buy companies that make equipment used to link computers to the Internet because of the market-growth potential. Last month, Northern Telecom acquired Bay Networks Inc. for $6.7 billion. Ericsson American depositary receipts fell $1.63 to close at $22.88 on Nasdaq.

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