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Teleca Buys Russian Mobile Developers Telma

Posted on: Wednesday, 12 April 2006, 21:00 CDT

Telecoms software services firm Teleca AB has paid an undisclosed sum to acquire Telma, a Russian company focused on mobile software development.

Telma is based in Nizhni Novgorod, Russia's fourth largest city, and made net profit of $7.5m on revenue of $26m last year. The company has 825 employees, of which 775 are engineers, and its clients include Motorola, Freescale, Esmertec, and McAfee.

Teleca said the deal means that 36% of employees in its mobile software development business are based in low-cost countries such as Russia, Poland, and Taiwan. Teleca has 3,000 employees in 16 countries providing R&D services to telecoms equipment manufacturers.

Teleca's move for Telma comes at a time when it is facing growing competition in the telecoms R&D space from Indian IT services vendors such as Wipro Technologies and Sasken Communication Technologies. Finland's TietoEnator Corp, which claims to be the largest European player in this market, has also ramped up its low-cost development facilities in the Czech Republic, Russia, and China.

Source: Datamonitor

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