Ercisson India acquires a minority stake in Novatium Solutions Pvt Ltd

Ericsson India reported that it had acquired a small stake in Novatium Solutions Private Ltd in a move it said is geared at bolstering its presence in emerging economies.  Novatium said it plans to use the accrued funds for a foray into the global market. That foray will be in terms of growth and expansion of the firm’s international business, and additionally benefit from Ericsson’s technical know-how.

Novatium is a Chennai based provider of Managed Utility Computing service and makes affordable and simple computing platform for the provision of comprehensive computing solutions.  The deal will see Novatium provide a PC together with cloud based services through telecom operators whereas Ericsson stands to gain immensely from the prospects of the fast growing Indian market.

Novatium launched its commercial service in November 2009 and has 40 employees in its Chennai office and 35 employees in the field throughout India. Via agreements with various software companies, Novatium offers a PC together with cloud-based services through telecom operators and distributors’ network, where the consumer buys their choice of a service-package.

The deal gives Novatium reinforced funding base that will enable it develop its offering and grow its overseas business in markets with similar needs. Gowton Achaibar, Ericsson head of Region, India, reiterated the significance of cloud based computing. He noted that, the business concept of PC as a service is a strong offering addressing a vital growing sector in the Indian market.

He further added that Ericsson India expects increased prospects in terms of the country’s business potential and the two firms’ capabilities will benefit both their customers. On his part, Novatium Solutions Pvt Ltd chief executive officer, Alok Singh said the partnership with the global mobile telephony player, Ericsson, will go a long way in bolstering Novatium’s offering, given Ericsson’s advanced technological expertise. That technological expertise and increased presence from Ericsson will as well be crucial in enabling Novatium enhance its offering and introduce it to the market.

Ericsson is one of Sweden's largest providers of telecommunication and data communication systems, and related services, covering a range of technologies, including especially mobile networks. Directly and through subsidiaries, it also has a major role in mobile devices and cable TV and IPTV systems.

Novatium is the leading provider of rich computing services in India. Novatium builds affordable and simple computing platform to provide ‘comprehensive’ and ‘maintenance free’ computing solutions.

30 Aug 2010