The Swedish telecommunications giant, Ericsson, has finalized the sale of its subsidiary, iconectiv, to Koch Equity Development LLC. This significant transaction, initially announced on August 16, 2024, will inject a substantial cash benefit of approximately SEK 9.9 billion (USD 1.0 billion) into Ericsson's coffers after taxes and related expenses. This sale also contributes to a one-off EBIT gain of SEK 7.6 billion (USD 0.8 billion), which will be reflected in Ericsson’s Q3 2025 financial results.
Prior to the sale, iconectiv, operating under Ericsson’s Segment Enterprise, generated roughly SEK 1.0 billion (USD 0.1 billion) in net income for Ericsson in 2024. A leading provider of number portability and core network services, iconectiv boasts over 5,000 clients across the telecommunications, media, and technology sectors. Its services encompass operations management, numbering, and data exchange, making it a crucial component of global network infrastructure. The deal also includes the settlement of Ericsson’s shareholder loan to iconectiv, totaling SEK 4.6 billion at the end of 2024, with a partial repayment of SEK 0.8 billion already completed in Q2 2025.
This divestment underscores Ericsson’s strategic shift towards streamlining its enterprise portfolio and concentrating its resources on key areas of innovation and growth. The sale reflects Ericsson’s adaptation to the evolving telecom landscape and a commitment to prioritizing next-generation networks and digital infrastructure advancements.