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SAN FRANCISCO - Koch Equity Development LLC (KED), the investment arm of Koch, Inc., has completed its acquisition of telecommunications solutions provider iconectiv, LLC from Ericsson (NASDAQ:ERIC) and Francisco Partners, according to a press release statement. Ericsson, a prominent player in the Communications Equipment industry with a market capitalization of $26.56 billion and annual revenue of approximately $26 billion, maintains a "GOOD" financial health score according to InvestingPro analysis.
The transaction, which was initially announced on August 16, 2024, marks the end of Francisco Partners’ co-ownership of iconectiv, which began in 2017. Ericsson had originally acquired iconectiv in 2012 as part of its Telcordia acquisition. InvestingPro data shows Ericsson has maintained dividend payments for 21 consecutive years and currently generates a strong free cash flow yield of 15%.
"We are grateful to Francisco Partners and their many years of support which has helped us reach today and our new partnership with KED," said Richard Jacowleff, CEO of iconectiv.
Headquartered in the United States, iconectiv provides information services, digital identity, and numbering intelligence solutions to more than 5,000 service providers, regulators, enterprises, and content providers worldwide. The company serves as the U.S. Short Code Registry Administrator and the U.S. Secure Telephone Identity Policy Administrator, and manages number portability in 10 countries including the United States.
Andrew Kowal, Partner at Francisco Partners, noted that "Globalization and digitalization have and will only continue to drive the need for technological security, especially in key areas that facilitate connectivity."
Financial terms of the transaction were not disclosed. Jefferies LLC and Goldman Sachs & Co. LLC served as financial advisors to iconectiv, while Latham & Watkins LLP provided legal counsel.
Francisco Partners, which has raised more than $50 billion in capital, has invested in over 450 technology companies since its founding 25 years ago.
In other recent news, Ericsson reported its financial performance for the second quarter of 2025, highlighting a mixed outcome. The company experienced a 6% decline in net sales, amounting to 49.1 billion SEK, though organic sales saw a modest growth of 2%. Ericsson’s adjusted gross margin improved significantly, rising to 48% from 43.9% in the same quarter the previous year. Despite facing currency headwinds and regional sales challenges, the company remains focused on strategic investments in 5G and AI technologies. These developments come as Ericsson continues to navigate a competitive market landscape.
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