Ericsson subsidiary iconectiv will offer 16.7 percent stake to technology investment firm Francisco Partners for $200 million.
The deal will value iconectiv of approximately $1.2 billion.
iconectiv supports communications industry by enabling the interconnection of networks, devices, and applications for more than two billion people every day.
The investment from Francisco Partners will enable iconectiv, which has headquarters in the United States, to accelerate growth.
More than 1,200 service providers, regulators, enterprises, and content providers use Iconectiv’s solutions that enable operators to interconnect networks.
iconectiv recently was designated by the Federal Communications Commission (FCC) of the US to serve as the Local Number Portability Administrator in the U.S.
“Having a U.S. partner as co-owner strengthens our ability to further grow iconectiv’s business and create value in a dynamic market,” said Per Borgklint, Senior Vice President, Chief Innovation Officer and Head of Business Unit Media, Ericsson.
Francisco Partners, since its launch over 17 years ago, has raised over $10 billion in capital and invested in nearly 200 technology companies.
iconectiv is built on assets from Telcordia, a company Ericsson acquired in 2012, and has since grown into a substantial business.
