Ericsson (ERIC) has finalized an agreement with Koch Equity Development LLC for the sale of iconectiv.
Following the transaction, Ericsson anticipates a net cash gain of approximately SEK 10.6 billion (around $1.0 billion) after accounting for expected taxes, transaction costs, and other liabilities.
Upon the completion of the deal, Ericsson projects a one-time EBIT increase of roughly SEK 8.8 billion (approximately $0.8 billion).
The transaction remains subject to customary closing conditions, including necessary regulatory approvals, and is expected to be completed in the first half of 2025.
Iconectiv, which is consolidated within Ericsson's Segment Enterprise, contributed approximately SEK 1.0 billion (around $0.1 billion) to Ericsson’s net income in 2023.
Acquired by Ericsson in 2012 as part of the Telcordia purchase, iconectiv has been co-owned with private equity firm Francisco Partners since 2017.
