LG-Nortel and Accton Technology Corp., a Taiwanese global telecommunications equipment company, signed an agreement to form a joint venture that will offer voice and data solutions for North American small and medium businesses (SMBs) and large enterprises.
The agreement was signed in Hsinchu, Taiwan, by Jae Ryung Lee, Chief Executive Officer of LG-Nortel and A.J. Huang, Chairman of Accton Group. LG-Nortel will own a 60 percent share in the joint venture and Accton Group will own 40 percent. The new company will be tentatively named Edgecore Networks Inc., which was a subsidiary of Accton and a specialized North American sales company for network solutions. The joint venture will be established by mid-February from headquarters in Irvine, California, USA.
The joint venture will combine the SMB voice and data product expertise of LG-Nortel with Edgecore Networks' marketing and sales capability, SMB channels, and logistics skills. Combining these capabilities will position the joint venture to take full charge of the SMB and enterprise equipment business of LG-Nortel and Accton across the USA and Canada. Both companies will cooperate in every aspect of their businesses including R&D, manufacturing, marketing, new business development, and brand use.
North America's highly-competitive SMB telecommunications solution is expected to comprise 27 percent ($5.7 billion) of the global market in 2010. Through the joint venture, LG-Nortel will bring its telecommunications solutions directly to the North American SMB and enterprise market. With a broad portfolio including LG-Nortel's voice products and Accton's data products, the joint venture will help both companies strengthen their position in the highly competitive convergence market.
Accton
LG-Nortel
Edgecore Networks
