ɫ����

• ɫ����is a US subsidiary of Ericsson acquired in 2012, and a provider of network number portability solutions and data exchange services
• The divestment will allow ɫ����to continue its growth trajectory under the new ownership of Koch Equity Development LLC

Ericsson (NASDAQ: ERIC) announces that it has entered into a binding agreement with Koch Equity Development LLC in relation to the sale of ɫ����(the “Transaction”).

Ericsson’s cash benefit from the Transaction, after the settlement of anticipated taxes, transaction expenses, and other liabilities, is expected to be approximately SEK 10.6 billion [1] (USD 1.0 billion).

Ericsson expects to record a one-off EBIT benefit of approximately SEK 8.8 billion [1] (USD 0.8 billion) on closing of the Transaction.

The Transaction is subject to customary closing conditions, including regulatory approvals, with completion targeted during the first half of calendar 2025.

ɫ����is consolidated by Ericsson and reported within Segment Enterprise. iconectiv's contribution [2] to Ericsson 2023 net income was approximately SEK 1.0 billion (USD 0.1 billion).

ɫ����is a US subsidiary of Ericsson acquired in 2012 as part of the Telcordia acquisition. Since 2017, ɫ����has been co-owned with private equity firm Francisco Partners. ɫ����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 as its main segments, and with limited strategic synergies with the rest of Ericsson’s portfolio.

[1] Assuming a USD - SEK exchange rate of 10.56. Realized exchange rate to be determined on closing.

[2] Contribution to net income including minority interests and shareholder loan impacts. Ericsson's shareholder loan to ɫ����was SEK 6.7 billion at year end 2023.