Francisco Partners to invest in Ericsson's iconectiv business

Le par GlobeNewswire  |  0 commentaire(s)

Francisco Partners to invest in iconectiv, an independent subsidiary owned by Ericsson Francisco Partners will invest USD 200 million to acquire a 16.7% ownership at an implied total valuation of iconectiv of approximately USD 1.20 billion ...

  • Francisco Partners to invest in iconectiv, an independent subsidiary owned by Ericsson
  • Francisco Partners will invest USD 200 million to acquire a 16.7% ownership at an implied total valuation of iconectiv of approximately USD 1.20 billion
  • Partnership will enable further development and growth of iconectiv and drive shareholder value

Ericsson (NASDAQ: ERIC) has secured a minority investment in its iconectiv business from Francisco Partners, a leading technology investment firm. iconectiv is a leading partner in the communications industry enabling the interconnection of networks, devices, and applications for more than two billion people every day. The partnership between Ericsson and Francisco Partners will enable iconectiv to accelerate growth and deliver shareholder value.

Headquartered in the United States, iconectiv develops market-leading solutions that enable operators to interconnect networks. The company's solutions are used by more than 1,200 service providers, regulators, enterprises, and content providers worldwide. iconectiv is also the global leader in providing numbering solutions and most recently was designated by the U.S. Federal Communications Commission to serve as the Local Number Portability Administrator in the U.S.

Per Borgklint, Senior Vice President, Chief Innovation Officer and Head of Business Unit Media, Ericsson, says: "Having a U.S. partner as co-owner strengthens our ability to further grow iconectiv's business and create value in a dynamic market."

"iconectiv has emerged as the trusted partner for global network operators," said Andrew Kowal, Partner at Francisco Partners. "We look forward to a strong partnership with Ericsson and the iconectiv management team."

Francisco Partners is a leading global private equity firm, which specializes in investments in technology businesses. Since its launch over 17 years ago, Francisco Partners has raised over USD 10 billion in capital and invested in nearly 200 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in opportunities where its deep knowledge and operational expertise can help companies realize their full potential.

iconectiv is built on assets from Telcordia, a company Ericsson acquired in 2012, and has since grown into a substantial business. Francisco Partners will invest USD 200 million to acquire a 16.7% ownership at an implied valuation of approximately USD 1.20 billion.

The USD 200 million will be transferred to Ericsson as a dividend, which Ericsson expects to receive in Q3 2017. The transaction has no material impact on Ericsson group income.

The investment is subject to regulatory approval and is expected to close in the third quarter of 2017.

NOTES TO EDITORS

For media kits, backgrounders and high-resolution photos, please visit www.ericsson.com/press

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MORE INFORMATION AT:

News Center

media.relations@ericsson.com
(+46 10 719 6996)

investor.relations@ericsson.com
(+46 10 719 00 00)

FRANCISO PARTNERS MEDIA CONTACT:

John Moore  press@franciscopartners.com

Ericsson is a world leader in communications technology and services with headquarters in Stockholm, Sweden. Our organization consists of more than 111,000 experts who provide customers in 180 countries with innovative solutions and services. Together we are building a more connected future where anyone and any industry is empowered to reach their full potential. Net sales in 2016 were SEK 222.6 billion (USD 24.5 billion). The Ericsson stock is listed on Nasdaq Stockholm and on NASDAQ in New York. Read more on www.ericsson.com.





This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ericsson via Globenewswire

Source(s) : Ericsson

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