Ericsson Agrees To Sell Iconectiv For About $1.0 Bln

(RTTNews) - Ericsson (ERIC) has agreed with Koch Equity Development LLC in relation to the sale of iconectiv.

Ericsson's cash benefit from the transaction, after the settlement of anticipated taxes, transaction expenses, and other liabilities, is expected to be about SEK 10.6 billion or $1.0 billion.

Ericsson expects to record a one-off EBIT benefit of around SEK 8.8 billion or about $0.8 billion on closing of the transaction.

The deal 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 SEK 1.0 billion or $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.