Ericsson has reached an agreement with SinglePoint for the purchase of the company's strategic operator and aggregation contract assets.
Sweden. 5 February, 2010 — Ericsson has reached an agreement with SinglePoint for the purchase of the company's strategic operator and aggregation contract assets. As part of the agreement, Ericsson will gain ownership of SinglePoint's operator connection agreements to further bolster its premium and standard rate messaging reach in the United States. This has been a successful business for SinglePoint and is a strategic move for Ericsson's Multimedia Brokering business in the United States.
This asset purchase will take Ericsson to CSCA (Common Short Code Administration) Tier 1 aggregator status in the US, as well as further strengthen the company's position as a global connection provider.
"We're very excited to secure an agreement with such a strong player like SinglePoint," said Scott Nichols, Director of Ericsson's IPX business in North America. "They have a well-established customer base and have developed a complete suite of operator connections that will enable Ericsson to be a leading player in the US market. Along with our existing customers and operator connections, Ericsson will expand the Multimedia Brokering suite of services with the additional SinglePoint assets. Ericsson's ability to secure this opportunity with SinglePoint was a key link in our North American strategy."
SinglePoint, based in Bellevue, Washington, enables brands, agencies and publishers to connect with more than 270 million North American wireless subscribers. SinglePoint's full suite of products and services enables publishers to monetise their mobile messaging traffic and advertisers to access premium inventory and rapidly launch mobile advertising campaigns.
"The rapid expansion of our mobile advertising business required us to sharpen our focus and direct more resources to servicing our advertising platform and its growing list of customers," said Gowri Shankar, president and CEO, SinglePoint. "The solution was to realign SinglePoint's business as a mobile advertising services company and seek a partner who could most effectively manage the leading messaging aggregation service we built. Ericsson's expertise and resources give us great confidence that our product and customers are in good hands, and we value the ongoing relationship we have with them." SinglePoint quote.
Johan Rosendahl, President of Ericsson IPX AB said, "The United States is the biggest market in the world and a key market in Ericsson's global strategy. This transaction not only strengthens our ability to compete there, but it also enables Ericsson to achieve the same leading position in the US that we enjoy elsewhere in the world."
