[ad_1]
NEW DELHI: Ericsson has agreed to sell its network services subsidiary iconectiv to Koch Equity Development LLC, the Swedish telecom gear maker said early Saturday.
Ericsson expects cash benefit from the transaction, after the settlement of anticipated taxes, transaction expenses, and other liabilities, to be approximately 10.6 billion Swedish kronor, or about $1 billion.
Ericsson expects to record one-off earnings before interest and taxes (EBIT) benefit of nearly 8.8 billion kronor, or $0.8 billion on the closing of the deal.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close during the first half of the calendar year 2025.
iconectiv is consolidated by Ericsson and reported within Segment Enterprise. iconectiv’s contribution to Ericsson’s net income in 2023 was about 1 billion kronor, or $0.1 billion.
iconectiv is a US subsidiary of Ericsson, which the mobile equipment vendor acquired in 2012 as part of the Telcordia acquisition.
Since 2017, iconectiv has been co-owned with private equity firm Francisco Partners.
iconectiv serves over 5,000 customers across various sectors as a provider of number portability solutions, and a provider of core network and operations management, numbering and data exchange services as its main segments, and with limited strategic synergies with the rest of Ericsson’s portfolio.
[ad_2]
Source link