Ericsson (NASDAQ:ERIC) on Friday said it has entered into an agreement with Koch Equity Development in relation to the sale of its subsidiary iconectiv.
Ericsson’s cash benefit from the transaction is expected to be about SEK 10.6 billion (USD 1.0 billion), the company said.
“The divestment will allow iconectiv to continue its growth trajectory under the new ownership of Koch Equity Development LLC,” added Ericsson. iconectiv was acquired in 2012 as part of the Telcordia acquisition.
Ericsson expects to record a one-off EBIT benefit of about SEK 8.8 billion on closing of the transaction, which is targeted to complete during the first half of calendar 2025.
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