Ericsson and Juniper Could Be Headed Toward Merger

In the wake of the Nokia and Alcatel-Lucent merger that occurred earlier this year, Ericsson has become the subject of mergers and acquisitions speculation. The company has always preached fixing its problems through organic methods and avoided making large deals. Perhaps the patience has finally grown thin. Juniper is making itself the most likely candidate to be acquired by Ericsson.

There would be a lot of upside to a merger between Ericsson and Juniper. For starters, Ericsson would drastically improve their status in IP routing. Ericsson has only made up 2% of the market while Juniper covers 17% of the market. Juniper’s wireline market would see sudden improvements and allow them to compete with companies like Nokia.

Another advantage in a merger between these two companies allows for more international cross-promotion, especially in the wireless-infrastructure sector. Improved profits will be seen by spreading their presence to more markets and boasting better relationships with Verizon and AT&T.

There are a few concerns when it comes to making this type of deal. Ericsson has built a reputation of being hit or miss when it comes to acquisitions. In addition, despite their 17% routing share, Juniper is currently on a downswing from 21%.

At the moment, no details have been discussed about a potential deal but it would likely cost Ericsson somewhere above $10 billion. Recently, Ericsson has been connected with a lot of rumors that include possible mergers with Ciena, Infinera, and Samsung. Despite these talks, most experts would put their money on a Juniper merger rather than a merger with anyone else. For now, we can only speculate but the telecom manufacturer landscape continues to make major shifts.

Launch 3 Telecom is a distributor of all major manufacturers within the telecom industry such as Ericsson, Juniper, and Ciena. We provide equipment at an affordable cost and short lead time. For more information on the products and services we sell, please contact 877-878-9134 or email sales@launch3.net.

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