The world’s top network gear maker, Ericsson, has agreed to buy a controlling stake in telecoms system venture between Nortel Networks and LG Electronics for $242million.

After the once top handset gear maker in North America, Nortel, filled for bankruptcy protection in January, it was looking for a buyer for its 50 percent plus one share in LG-Nortel joint venture.

According to an issued statement by Ericsson, the venture includes contracts with top Korean operators like KT Corp and SK Telecom. “This acquisition will significantly expand Ericsson’s footprint in the Korean market and provide Ericsson with a well established sales channel,” the statement also added.

Nortel said that the venture did not file for credit protection after it reported $650million in sales last year. The LG-Nortel joint venture was set up in 2005.

LG Electronics said that it will remain committed to maintaining its strategic investor status in LG-Nortel. The name, however, will be changed to LG-Ericsson.