Hitachi Acquires Software Assets From Nortel Networks

Hitachi Ltd, the Tokyo-headquartered electronics company has acquired software assets from Nortel Networks and group companies. The cost of the deal is put to USD 10 million.

The software assets are the Serving GPRS Support Node on Advance Telecommuting Architecture (ATCA), Gateway GPRS Support Node on ATCA, Mobility Manager Element, AGW Serving Gateway, AGW Packet Data Gateway. Besides these, the company has also taken in possession all relevant non-patent intellectual property, equipment, other related tangible assets, a non-exclusive license of certain relevant patents, etc.

Besides Nortel Networks Ltd, other group companies involved in the deal were Nortel Networks Inc and Nortel Networks Technology Corporation.

Hitachi plans to strengthen its Long Term Evolution (LTE) equipment with the help of this acquisition. The company expects the LTE market to expand worldwide, and the standard was established as recently as in March 2009 by 3GPP, an international body that sets industry standards. The demand is mainly in broadband-intensive communications in the mobile communications field, including mobile phones and data card devices for PCs. Applications that necessitate large-volume file transfers, music and video streaming services are the ones that drive LTE. This purchase will give Hitachi a quick head-start.

Read about the latest inorganic growth achieved by Hitachi Ltd, here.