Elcoteq SE and Ericsson have completed a transaction on July 31, 2009 whereby the majority of the machinery, equipment and materials of Elcoteq's Tallinn manufacturing operations were sold to Ericsson. The transaction included also the transfer of the lease agreement concerning manufacturing premises and employment agreements related to these operations.

Approximately 1,200 of Elcoteq's 1,600 employees in Tallinn were transferred to Ericsson with existing terms and conditions of employment. Elcoteq will continue operations in Tallinn on a smaller scale in a specialized plant. Deliveries to Ericsson will continue from other Elcoteq plants. European high volume manufacturing will be concentrated in Elcoteq's plant in Pécs, Hungary.