Tennyson, which is best known for Smart Office eXchange (SOX), a voice and data convergence platform, will take over Ericsson's data services division if the deal goes through. Tennyson have agreed to absorb around 25 staff from Ericsson, most of which are Research staff, effectively doubling the R&D staff numbers at Tennyson.
Ericsson has been shedding R&D staff for the last 18 months, and last year closed down Melbourne-based AsiaPacificLab, putting 450 research staff out of work.
Ericsson Data Services provides broadband Internet products such as Synchronous High-speed Digital Subscriber Line (SHDSL) and Asynchronous Digital Subscriber Line (ADSL) products to Telcos to install in local network exchanges. There will be a transition period as the products are rebranded from Ericsson to Tennyson, Harvey Barker, Tennyson's chief executive officer, told ZDNet Australia .
Over the past three years Ericsson Data Services has generated more than AU$100 million in international sales, and Tennyson hopes to expand the business further into Australia, Russia, central Europe and South East Asia, particularly the Phillipines.
"For Tennyson, this is a low risk and highly exciting opportunity because the end sale price is linked to success," said Harvey Parker, Tennyson chairman. "The initial cash outlay is expected to be between Au$1 million to AU$1.4 million. The balance of the purchase price will be linked to the ongoing sales."
