The EAX suite of ATM (Asynchronous Transfer Mode) products includes integrated access devices, multi service wide area network switches and proprietary software. HarTec handed over AU$2.25 million in cash for the business, and will pay over a proportion of future sales.
"This transaction is also consistent with Ericsson's world wide strategy of divesting of product development and manufacturing whilst investing in sales and servicing of its product range," said Tony Malligeorgos, Ericsson Australia's director of marketing and business development.
HarTec has received approximately AU$33 million in minimum revenue guarantees from Ericsson and Kongsberg Defence and Aerospace, a Norwegian company that has partnered with Ericsson and HarTec to sell to the defence marketplace. The payments will be made to HarTec quarterly in advance over a two-year period beginning in June 2003.
All key staff involved in the transfer will be offered employment, and the EAX business will continue to undertake product development and seek out new distribution partners around the world, according to HarTec.
