Ericsson Agrees To Divest Subsidiary iconectiv; Expects $1B In Cash Benefit

Ericsson (NASDAQ:ERIC) shares are trading higher today. On Friday, the company inked a binding agreement with Koch Equity Development LLC regarding the sale of iconectiv.

iconectiv is a U.S. subsidiary of Ericsson acquired in 2012 and a provider of network number portability solutions and data exchange services. Since 2017, iconectiv has been co-owned with private equity firm Francisco Partners.

Ericsson expects to gain approximately SEK 10.6 billion ($1.0 billion) in cash from the deal after taxes, transaction expenses, and other liabilities.

Ericsson projects to record a one-off EBIT benefit of about SEK 8.8 billion ($0.8 billion) upon closing the transaction.

The transaction is expected to close in the first half of calendar 2025, pending customary regulatory approvals.

As of June-end, Ericsson’s net cash stood at SEK 28.7 billion

Investors can gain exposure to the stock via IShares U.S. Digital Infrastructure And Real Estate ETF (NYSE:IDGT) and Defiance Connective Technologies ETF (NASDAQ:SIXG).

Price Action: ERIC shares are up 1.13% at $7.18 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Mats Wiklund via Shutterstock

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