Tieto strengthens its position in software R&D services – all Ericsson’s Radio Access Networks software R&D activities in Lviv, Ukraine to be transferred to Tieto

Tieto and Ericsson have agreed that all Ericsson’s Radio Access Networks (RAN) software R&D activities in Lviv, Ukraine will be transferred to Tieto. The companies will continue their strong partnership and Tieto continues to provide R&D services to Ericsson from the Lviv site along with establishing operations for other customers. The transaction is in line with Tieto’s ambitions to further strengthen its position as a global top software R&D services provider.

The transaction comprises approximately 150 employees, located in Lviv, offered new employment at Tieto. Tieto will continue its strong collaboration with Ericsson dating back to year 2002, including RAN deliveries in Lviv. Tieto plans also to grow the Lviv site operations during the coming years and provide services and solutions to multiple clients in several industries.

“This transaction marks an important step for Tieto and is a key enabler for our continued strong growth and competitiveness within areas such as 5G, IoT, Automotive and Smart Devices. Our strong expertise in software R&D and outsourcing create a good foundation for supporting Ericsson’s business growth and our mutual success. The employees in Lviv have unique skills in areas such as end-to-end customer engagements, RAN applications and software R&D which fits our future needs very well. We warmly welcome the Lviv employees to Tieto and will focus on securing smooth transition for both parties,” says Tom Leskinen, Head of Tieto Product Development Services (PDS).

“We are pleased to expand our collaboration with Tieto in software development. Using Tieto’s strong experience in efficient global delivery, this agreement secures both the performance and stability in our 2G software deliveries, at the same time as it presents new exciting opportunities for our colleagues in Lviv,” says Joakim Sorelius, Head of Networks R&D at Ericsson.

The transaction is expected to close during Q3 2019 subject to customary regulatory approvals. The value of the transaction is not disclosed.


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