Ericsson has agreed to sell iconectiv, US subsidiary of Ericsson acquired in 2012 as part of the Telcordia acquisition, to Koch Equity Development.
Ericsson’s cash benefit from the transaction is expected to be approximately SEK 10.6 billion or $1 billion.
Ericsson expects to record a one-off EBIT benefit of approximately SEK 8.8 billion or $0.8 billion on closing of the transaction.
Iconectiv’s contribution to Ericsson 2023 net income was approximately SEK 1.0 billion or $0.1 billion.
In June 2011, Ericsson announced its decision to buy Telcordia for £1.15 billion as part of its strategy to boost OSS / BSS business. Telcordia was a leader in the development of mobile, broadband and enterprise communications software and services with 2,600 employees in 2011. Telcordia generated revenue of $739 million in 2011.
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.
Baburajan Kizhakedath
