Francisco Partners to invest in Ericsson's iconectiv business
March 07 2017 - 3:00AM
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Francisco Partners to invest in iconectiv, an
independent subsidiary owned by Ericsson
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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
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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
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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.
Francisco Partners to invest in
Ericsson's iconectiv business
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
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information contained therein.
Source: Ericsson via Globenewswire
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