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Aug 19, 2024 10:40 AM

Ericsson Agrees To Divest Subsidiary iconectiv; Expects $1B In Cash Benefit

Ericsson (NASDAQ:ERIC) shares are trading higher today. On Friday, the company inked a binding agreement with Koch Equity Development LLC regarding the sale of iconectiv.

iconectiv is a U.S. subsidiary of Ericsson acquired in 2012 and a provider of network number portability solutions and data exchange services. Since 2017, iconectiv has been co-owned with private equity firm Francisco Partners.

Ericsson expects to gain approximately SEK 10.6 billion ($1.0 billion) in cash from the deal after taxes, transaction expenses, and other liabilities.

Ericsson projects to record a ...