Ericsson has entered into a binding agreement with Koch Equity Development LLC in relation to the sale of its US subsidiary iconectiv.
Ericsson’s cash benefit from the Transaction, after the settlement of anticipated taxes, transaction expenses and other liabilities, is expected to be approximately US$1 billion.
Ericsson expects to record a one-off EBIT benefit of approximately US$ 0.8 billion on closing of the Transaction.
The Transaction is subject to customary closing conditions, including regulatory approvals, with completion targeted during the first half of calendar 2025.
iconectiv is consolidated by Ericsson and reported within Segment Enterprise. iconectiv’s contribution to Ericsson 2023 net income was approximately US$ 0.1 billion.
iconectiv is a US subsidiary of Ericsson 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 leading provider in 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.
The divestment will allow iconectiv to continue its growth trajectory under the new ownership of Koch Equity Development LLC.
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