Ericsson to sell US subsidiary iconectiv
iconectiv is a US subsidiary that came into Ericsson's control following an acquisition back in 2012. The company is a provider of network number portability solutions and data exchange services
The divestment will allow iconectiv to continue its growth trajectory under the new ownership of Koch Equity Development LLC. The Swedish company's cash benefit from the transaction – after the settlement of anticipated taxes, transaction expenses, and other liabilities – is expected to be approximately SEK 10.6 billion (USD 1.0 billion).
Thus, Ericsson expects to record a one-off EBIT benefit of approximately SEK 8.8 billion (USD 0.8 billion) on closing of the deal.
iconectiv's contribution to Ericsson's 2023 net income was approximately SEK 1.0 billion (USD 0.1 billion).
The transaction is as always subject to customary closing conditions, including regulatory approvals, but the parties are targeting to complete the deal during the first half of calendar 2025.
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.
