Koch Equity Development Acquires Telcordia Technologies for $1 Billion

Koch Equity Development acquired Telcordia Technologies from Telefonaktiebolaget LM Ericsson for approximately $1 billion. The deal, expected to close in H1 2025, will result in a $1 billion cash benefit for Ericsson after taxes and expenses. Iconectiv, the acquired company, will continue to be managed by its leadership team in Bridgewater, New Jersey. Rothschild & Co and Citi advised Koch Equity Development, while Jefferies and Goldman Sachs advised Telcordia Technologies.

Stockholm, Aug. 22, 2025 /PRNewswire/ -- Further to the announcement on August 16, 2024, Ericsson (NASDAQ: ERIC) today announces it has completed the sale of iconectiv to Koch Equity Development LLC. Ericsson's cash benefit from the transaction, after the settlement of anticipated taxes, transaction expenses, and other liabilities, is expected to be approximately SEK 9.9 billion [1] (USD 1.0 billion). Ericsson will record a one-off EBIT benefit of approximately SEK 7.6 billion [1] (USD 0.8 billion) in its Q3 2025 financial results. Iconectiv is consolidated by Ericsson and reported within Segment Enterprise. Iconectiv's contribution [2] to Ericsson's 2024 net income was approximately SEK 1.0 billion (USD 0.1 billion). Iconectiv serves over 5,000 customers across various sectors as a leading provider in number portability solutions, and a provider of core network and operations management, numbering and data exchange services [1].

The sale of iconectiv is part of Ericsson's ongoing strategy to focus on its core competencies in mobile communication and connectivity solutions. The transaction is expected to close in the first half of 2025. Koch Equity Development will manage iconectiv, which will continue to operate under its leadership team in Bridgewater, New Jersey. Rothschild & Co and Citi advised Koch Equity Development, while Jefferies and Goldman Sachs advised Telcordia Technologies.

Ericsson's shareholder loan to iconectiv was SEK 4.6 billion at year-end 2024. The transaction will result in a significant cash inflow for Ericsson, which will be used to strengthen its financial position and invest in future growth opportunities.

This release includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking statements [1].

References:
[1] https://finance.yahoo.com/news/ericsson-completes-sale-iconectiv-153500799.html