Under the agreement Ericsson will take on the design, development and sales of LTE, 2G, 3G and 4G multimode modem products, as well as acquiring an estimated 1,800 employees and contractors, based largely in Sweden, Germany, India and China.
ST will be responsible for the existing ST-Ericsson businesses, including the testing facilities, and will take on about 950 workers, mainly in France and Italy, to support existing and developing businesses.
Previous CEO at ST-Ericsson, Didier Lamouche, left his position earlier this month, and COO, Carlo Ferro has been newly appointed as CEO to manage the transition.
The reassignment is subject to regulatory approval and is expected to be completed in Q3 of 2013. Any remaining ST-Ericsson units will be closed down.
