The purchase is yet another sign of the convergence of telephone and networking companies.
"Ericsson sees excellent synergies between ACC's portfolio of remote access products and its own IP-based networking solutions and future development plans," the company said in a statement.
Advanced Computer's management team will remain intact after the deal is completed. Newbridge, the majority owner of Advanced Computer, will continue to resell the company's products.
The two companies have been marketing joint venture partners for the past one-and-a-half years.
"Advanced Computer's management team is committed to this new opportunity," Advanced Computer president Bert Whyte said in a statement.