- Mobile equipment maker Ericsson and U.S. networking company Cisco Systems said they have agreed on a business and technology partnership.
- Ericsson has been struggling, with sales down 7% so far this year and relatively flat over the previous three years.
- The companies said the new partnership means new areas of revenue because they will tap new markets in professional services, software and the resale of Cisco products.
The companies say they plan to offer routing, data center, networking, cloud, mobility, management and control, and global services capabilities together.
"We are the wireless No. 1 in the world," Ericsson Chief Executive Hans Vestberg said. “Cisco is by far the No. 1 in the world when it comes to IP routers. Together we can create innovative solutions."
The two companies said the strategic partnership will be a key driver of growth and value for the next decade, with each company expecting to ramp up to $1 billion or more in revenue for each by 2018.