The company has been in Ericsson’s portfolio for over a decade
Ericsson has announced it will sell its US subsidiary, iconectiv, to Koch Equity Development, for SEK 10.6 billion ($1 billion).
The sale is expected to be finalised in the first half of 2025, subject to regulatory approval.
Ericsson expects to see a one-time gain of around SEK 8.8 billion ($800,000) in its earnings once the transaction has completed.
Based in New Jersey, USA, iconectiv specialises in network number portability solutions and data exchange services. The company is the leading number portability administrator in 10 countries, including the United States.
Ericsson acquired telecom software specialist iconective (then Telcordia) in 2011 for $1.15 billion. The company’s primary service was managing the system that allows users to keep their phone numbers when switching carriers.
Part of Ericsson’s Enterprise branch, iconective generated about $1 billion to Ericsson’s net income in 2023. However, while profitable, iconectiv’s focus on services like number portability and data exchange does not align closely with Ericsson’s main business areas.
According to Ericsson, it is this lack of synergy with the rest of the company’s portfolio that is the main driven behind the sale.
iconectiv has “over 5,000 customers across various sectors” has been co-owned by Francisco Partners since 2017. Under Koch Equity Development’s ownership, iconectiv is expected to continue growing and expanding its market presence.
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