Ericsson has entered into a binding agreement with Koch Equity Development LLC in relation to the sale of iconectiv, which is expected to be worth approximately SEK 10.6 billion (USD 1 billion) in cash.
Targeted to be closed during the first half of calendar 2025, Ericsson expects to record a one-off EBIT benefit of approximately SEK 8.8 billion (USD 0.8 billion) upon closing of the transaction.
Reported within the enterprise segment, iconectiv's contribution to Ericsson’s 2023 net income was only approximately SEK 1.0 billion (USD 0.1 billion).
iconectiv serves over 5,000 customers across various sectors as a leading provider in number portability solutions, and as a provider of core network and operations management, numbering and data exchange services as its main segments.
The current sale is not exactly a win as Ericsson first acquired iconectiv back in 2012 as part of Telcordia for USD 1.15 billion, but the divestment will allow iconectiv to continue its growth trajectory under the new ownership of Koch Equity Development LLC.
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