Sony completes £871m deal to buy Ericsson’s share of Sony Ericsson

Sony have now completed their purchase of the Ericsson share in the Sony Ericsson company. It has cost them £871m and brings to an end the ten year partnership between the two companies.

The company will now go by the name of Sony Mobile Communications, and Bert Norberg will remain both the president and the CEO. The headquarters will also remain in London.

At last month’s Consumer Electronics Show in Las Vegas, Sony unveiled the first handset under the company’s new name; the Xperia S. It will go on general sale throughout the UK on the 9th of March across all the mobile networks except Vodafone. One part of the deal that was struck was that Ericsson would sign over 5 patent families from their portfolio and continue to licence other intellectual properties for Sony.

Sony have said in a statement that the company formally known as Sony Ericsson would now be trading under the new name of Sony Mobile Communications and will be further integrating the mobile phone business as a vital part of the business, and their aim is to accelerate the convergence between Sony’s line-up of consumer electronic products that are network enabled, such as tablets, smartphones, PC’s and televisions.

When the deal was first announced back in October, the chairman, CEO and president of Sony, Sir Howard Stringer, said that the acquisition made sense for both Sony and Ericsson, and that it will make a difference to consumers who are wanting to connect with their content. Their vibrant smartphone business would continue to grow and they were still on target to reach their 4 screen strategy.