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STOCKHOLM - Ericsson (NASDAQ:ERIC), a prominent player in the Communications Equipment industry with a market capitalization of $26.2 billion, announced Friday it has completed the sale of iconectiv to Koch Equity Development LLC, a transaction initially revealed on August 16, 2024. According to InvestingPro analysis, Ericsson maintains strong financial health with a "GOOD" overall rating.
The Swedish telecommunications equipment maker expects to receive approximately SEK 9.9 billion ($1.0 billion) in cash proceeds from the sale after taxes, transaction expenses, and other liabilities are settled.
Ericsson will record a one-off EBIT benefit of approximately SEK 7.6 billion ($0.8 billion) in its third-quarter financial results for 2025.
iconectiv, which was previously consolidated by Ericsson and reported within its Enterprise segment, contributed approximately SEK 1.0 billion ($0.1 billion) to Ericsson’s net income in 2024.
The sold business serves over 5,000 customers across various sectors as a provider of number portability solutions, core network and operations management, numbering, and data exchange services.
The transaction calculations assume a USD-SEK exchange rate of 9.76 and include a partial loan repayment of SEK 0.8 billion ($0.1 billion) from the second quarter of 2025. Ericsson’s shareholder loan to iconectiv stood at SEK 4.6 billion at the end of 2024.
This information is based on a company press release statement issued by Ericsson.
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