Ericsson sells off Iconectiv

Ericsson acquired Iconectiv, described as a provider of network number portability solutions and data exchange services, in 2012 as part of the Telcordia acquisition. Since 2017 it been co-owned with private equity firm Francisco Partners.

The deal is expected to be worth around SEK10.6 billion, or US$1 billion. Ericsson expects to record a one-off EBIT benefit of approximately SEK8.8 billion (US$0.8 billion) on closing the transaction.

The release states that the divestment will allow iconectiv to ‘continue its growth trajectory under the new ownership of Koch Equity Development.’

Iconectiv currently sits within Ericsson enterprise segment, and its contribution to the kit vendor’s 2023 net income was approximately SEK 1.0 billion ($US 0.1 billion).

iconectiv serves over 5,000 customers, states the release, as a provider in number portability solutions, core network and operations management, numbering and data exchange services, and with ‘limited strategic synergies with the rest of Ericsson’s portfolio.’

The deal is subject to customary closing conditions, including regulatory approvals, with completion targeted during the first half of 2025.

Last month, Ericsson got another much-needed boost to its balance sheet from a multi-year global patent cross license agreement with Chinese smartphone giant Oppo. “This important royalty bearing license agreement with Oppo allows Ericsson to further invest in fundamental communications technologies,” said Christina Petersson, Chief Intellectual Property Officer at Ericsson.