I'll bet you didn't know that LM Ericsson(Nasdaq: ERICY), the Swedish maker of telephones and its accompanying infrastructure, has a defense business, too. And I'm pretty sure you thought Saab made only cars, all under the GM's (NYSE: GM) wing these days.

So when I tell you that Swedish defense, aviation, and space contractor Saab has agreed to acquire Ericsson's defense division in a landmark deal worth about $410 million, I may need to explain further. This acquisition is supposedly an early step in Saab's long-term plan to become an international defense powerhouse, and it's actually been a long time coming.

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