Ericsson Sells iconectiv for $1 Billion

TL;DR

Ericsson just sold iconectiv for $1B to Comscope, shedding a non-core asset.

AI Summary

On August 16, 2024, LM Ericsson Telephone Company announced the sale of its subsidiary, iconectiv, to Comscope, Inc. for $1.0 billion. This strategic divestment is part of Ericsson's ongoing efforts to streamline its business and focus on core operations.

Why It Matters

This sale allows Ericsson to raise capital and concentrate on its core network and cloud businesses, potentially impacting its competitive position and future growth strategies.

Risk Assessment

Risk Level: low — The filing is an announcement of a completed sale and does not introduce new operational or financial risks.

Key Numbers

• $1.0B — Sale Price (Amount Ericsson received for iconectiv)

Key Players & Entities

• LM Ericsson Telephone Company (company) — Seller
• iconectiv (company) — Divested Subsidiary
• Comscope, Inc. (company) — Acquirer
• $1.0 billion (dollar_amount) — Sale Price
• August 16, 2024 (date) — Announcement Date

FAQ

Filing Documents

• d845434d6k.htm (6-K) — 22KB
• g845434g0819132639605.jpg (GRAPHIC) — 2KB
• g845434g0819132831807.jpg (GRAPHIC) — 2KB
• 0001193125-24-202461.txt ( ) — 30KB

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. TELEFONAKTIEBOLAGET LM ERICSSON (publ) By: /s/ STELLA MEDLICOTT Stella Medlicott Senior Vice President, Chief Marketing and Communications Officer By: /s/ LARS SANDSTRÖM Lars Sandström Senior Vice President, Chief Financial Officer Date: August 19, 2024 PRESS RELEASE August 16, 2024 Ericsson announces sale of iconectiv iconectiv is a US subsidiary of Ericsson acquired in 2012, and a provider of network number portability solutions and data exchange services The divestment will allow iconectiv to continue its growth trajectory under the new ownership of Koch Equity Development LLC Ericsson (NASDAQ: ERIC) announces that it has entered into a binding agreement with Koch Equity Development LLC in relation to the sale of iconectiv (the Transaction). Ericssons cash benefit from the Transaction, after the settlement of anticipated taxes, transaction expenses, and other liabilities, is expected to be approximately SEK 10.6 billion [1] (USD 1.0 billion). Ericsson expects to record a one-off EBIT benefit of approximately SEK 8.8 billion [1] (USD 0.8 billion) on closing of the Transaction. The Transaction 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. iconectivs contribution [2] to Ericsson 2023 net income was approximately SEK 1.0 billion (USD 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. iconectiv serves over 5,000 customers across various sectors as a leading provider in number portability solutions, and a provider of

Forward-looking statements

Forward-looking statements This release includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words believe, expect, foresee, anticipate, assume, intend, likely, projects, may, could, plan, estimate, forecast, will, should, would, predict, aim, ambition, seek, potential, target, might, continue, or, in each case, their negative or variations, and similar words or expressions are used to identify forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking statements. 2 (3) PRESS RELEASE August 16, 2024 We caution investors that these statements are subject to risks and uncertainties many of which are difficult to predict and generally beyond our control that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Important factors that could affect whether and to what extent any of our forward-looking statements materialize include, but are not limited to, the factors described in the section Risk Factors in the latest interim reports, and in Risk Factors in the Annual Report 2023. These forward-looking statements also represent our estimates and assumptions only as of the date that they were made. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this release, to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events, whether as a result of new information, future events or otherwise, except as required by applicable law or stock exchange regulations. This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse R

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View this 6-K filing on SEC EDGAR