Ericsson has acquired Spain-based fibre provider Abentel as it looks to boost its fixed-line offering.
Abentel, a subsidiary of technology company Abengoa, has been providing design, construction and maintenance of networks since 1968.
About 500 Abentel employees who specialise in fibre network rollout and maintenance services will move to Ericsson as part of what the two companies are calling an Activities Transfer Agreement.
This includes existing agreements that Abentel has in place with two unnamed European operators.
The deal, financial details of which were not disclosed, is expected to close in the third quarter.
Ericsson said the acquisition would enable it to create “a global hub” for fibre services.
The vendor currently provides fibre network planning, design and roll out as a managed service.
It also sells fibre access products through a partnership with Calix.
According to data from research house IHS, Ericsson retained its lead as the top telecoms outsourcer last year.
Richard Hoepner, Head of Network Roll-Out and Customer Support at Ericsson, said: "Fibre is a key component for the next generation all-optical IP network.
“By acquiring Abentel's capabilities and coupling them with Ericsson's world-class service offering, Ericsson can deliver unmatched scalability for its customers' fibre projects.”
The sale of Abentel continues Abengoa's divestiture programme as it looks to reduce its debt and focus on the energy and environment sectors.
Last month, it sold its three percent stake in mobile operator Yoigo following the decision by Telia to sell its majority shareholding.