Ericsson exploring sale of Iconectiv unit for USD 1.5-2 bln - report

News General Global 4 MAY 2020
Ericsson exploring sale of Iconectiv unit for USD 1.5-2 bln - report
Ericsson is looking to sell its US call routing unit Iconectiv, Bloomberg reported, citing sources familiar with the matter. A sales advisor has been hired to help with the divestment, which has so far attracted a number of private equity firms. The unit is expected to bring in USD 1.5-2 billion. 

The move to sell comes amid calls by activist investor Cevian Capital, Ericsson’s largest shareholder, to fully sell the business. Still, sources say no final decision has been made and Ericsson could decide to keep the unit. 

Ericsson acquired Iconectiv, formerly known as Telcordia, in early 2012 for over USD 1 billion. Francisco Partners, a private equity firm based in California, took a 16.7 percent stake in the business in 2017, for USD 200 million.

Categories:

General

Companies:

Telcordia,  Ericsson,  Iconectiv

Regions:

Global

Tags:

Shareholders & subsidiaries, Corporate strategy, M&A buyouts & divestments

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