Ericsson sells US call routing subsidiary for $1 billion

The sale is necessary as Ericsson seeks to cut costs and improve the profitability of its divisions in the challenging telecom equipment market, while spending on 5G technology has failed to materialize, it said. statement companies.

Iconectiv provides communications solutions to more than 5,000 customers worldwide, including telecommunications companies and government agencies.

The negotiation process for the sale of Iconectiv began in 2020, as reported Bloomberg reported that the unit was valued at between $1.5 and $2 billion. The deal is expected to be completed in the first half of 2025. One-time earnings will amount to approximately CZK 8.8 billion.

The new owner, Koch Industries, is a conglomerate known for its oil refineries, chemical plants and technology investments.

In 2020 Koch Share Development purchased part cloud software company Infor Inc.which was not already owned by Koch Industries, as a result of the transaction the combined business was valued at $11 billion, excluding preferred stock (including $13 billion).