Ericsson acquired Nortel Networks’ GSM assets in a US$70 million cash deal. The win gives it control of select North American wireless assets including an installed customer base, with Austrian firm Kapsch CarrierCom doling out US$33 million for the outstanding international GSM assets. Ericsson boss Hans Vestberg said the buy significantly boosted its regional footprint including major operator customers such as AT&T and T-Mobile USA. The deal requires approval by Canadian and US bankruptcy courts.

“Along with our recent acquisition of Nortel’s CDMA and LTE assets, the transaction emphasizes Ericsson’s commitment to the North American market and strengthens our position as a leading provider of telecommunications technology and services in the United States and Canada,” the incoming CEO said in a statement. “Our Ericsson family will be once again enriched by the addition of the valuable Nortel employees.”

Ericsson said the move would add to earnings within one year. Nortel’s regional GSM business generated US$400 million last year. Ericsson agreed to take on another 350 Nortel employees as part of the deal. Its recent Nortel prizes have nearly tripled its North American workforce and positioned the market as the single biggest geographical segment within Ericsson.