Ericsson completes sale of iconectiv to Koch Equity, records $0.8 bln EBIT benefit.

• Ericsson completes sale of iconectiv to Koch Equity Development. • Cash benefit of SEK 9.9 billion (USD 1.0 billion) expected. • One-off EBIT benefit of SEK 7.6 billion (USD 0.8 billion) in Q3 2025. • iconectiv serves 5,000 customers across various sectors.

Title: Ericsson Completes Sale of Iconectiv, Generating Significant Financial Benefits

Ericsson has completed the sale of its subsidiary, iconectiv, to Koch Equity Development LLC. The transaction is expected to generate a significant cash benefit for the company, with a projected SEK 9.9 billion (USD 1.0 billion) after taxes and expenses [1]. This sale will also result in a one-off EBIT benefit of approximately SEK 7.6 billion (USD 0.8 billion) in Q3 2025, as announced by Ericsson.

Iconectiv, previously reported within Ericsson's Enterprise segment, contributed approximately SEK 1.0 billion (USD 0.1 billion) to Ericsson's 2024 net income [2]. The company serves over 5,000 customers across various sectors, providing leading solutions in number portability, core network operations management, numbering, and data exchange services.

The sale of iconectiv aligns with Ericsson's strategy to divest non-core assets and focus on its primary telecommunications infrastructure business. The transaction includes settling a SEK 4.6 billion shareholder loan that Ericsson had extended to iconectiv, improving the parent company's credit exposure [3].

The cash infusion from the sale, USD 1 billion, provides additional financial flexibility for Ericsson. This could be used to reduce debt, invest in core growth areas, or return to shareholders. The transaction is a strategic move that strengthens Ericsson's balance sheet at a time when the telecommunications equipment market faces challenging conditions.

References
[1] https://www.ericsson.com/en/press-releases/2025/8/ericsson-completes-sale-of-iconectiv
[2] https://www.stocktitan.net/news/ERIC/ericsson-completes-sale-of-51w51kwyf035.html
[3] https://www.prnewswire.com/news-releases/ericsson-completes-sale-of-iconectiv-302536805.html