It’s not another mega merger from established enterprise companies, yet a new strategic partnership between Cisco Systems and Ericsson may benefit both companies to the tune of $1 billion.

The partnership, first reported by TechCrunch yesterday, would cement plans for the two companies to collaborate on the sales of products across a wide range of products and verticals.

The companies released a joint statement yesterday morning, showcasing a few planned details of the announcement.

“The strategic partnership will be a key driver of growth and value for the next decade, with each company benefiting from incremental revenue in calendar year 2016 and expected to ramp to $1 billion or more for each by 2018,” reads the statement.

The relationship will offer customers the best of both companies: routing, data center, networking, cloud, mobility, management and control, and global services capabilities.

Together the companies plan to deliver customer value by:

  • Offering service provider customers an end-to-end product and services portfolio, and joint innovation that accelerates new business models,
  • Creating the mobile enterprise experience of the future through a highly secure technology architecture for seamless indoor/outdoor networks, and
  • Channeling the combined scale and innovation of both companies to accelerate the platforms and services needed to digitize countries and create the Internet of Things.

According to the statement, Ericsson and Cisco will offer end-to-end leadership across network architectures including 5G, cloud, IP, and the Internet of Things – from devices and sensors to access and core networks to the enterprise IT cloud.

“With the pace the market is moving, the successful companies will be those who build the right strategic partnerships to accelerate innovation, growth, and customer value,” said Chuck Robbins, CEO of Cisco in a statement. “We have worked with Ericsson during the last year on developing a strategy for future industry leadership, and can start executing together today.”

The full details of the partnership are still unclear, though the companies are each projecting that the partnership will yield an additional $1 billion in revenue by 2018. One detail was released in the announcement: Ericsson will be getting patent license fees from Cisco as part of the deal.

“Our partnership will drive growth for both companies, unique value for our customers, and incredible innovation for the industry,” said Robbins.