Ericsson executives have denied rumors that they are in talks with Cisco, after its recent go-to-market partnership, on the potential acquisition of the company by Cisco. Last week, both the telecoms vendors have announced a global business and technology partnership that covers joint development, product reselling, and collaboration in key emerging markets. With the partnership, Ericsson and Cisco aim to create an additional $1 billion in incremental sales for each company by 2018.
The rumor started after Swedish daily Dagens Industri reported that Cisco is seeking a deal with Ericsson's board and major shareholders on a possible takeover.
"We note that there are rumors in the market regarding an acquisition of Ericsson by Cisco possibly spurred by the recent announcement of a partnership between our two companies", said President and CEO of Ericsson, Hans Vestberg. "The talks leading up to the partnership announcement have been ongoing for a year and there have not been any discussions whatsoever on a merger or an acquisition."