Francisco Partners Invests in Ericsson's iconectiv
STOCKHOLM -- Ericsson (NASDAQ: ERIC) has secured a minority investment in its iconectiv business from Francisco Partners, a leading technology investment firm. iconectiv is a leading partner in the communications industry enabling the interconnection of networks, devices, and applications for more than two billion people every day. The partnership between Ericsson and Francisco Partners will enable iconectiv to accelerate growth and deliver shareholder value.
Headquartered in the United States, iconectiv develops market-leading solutions that enable operators to interconnect networks. The company's solutions are used by more than 1,200 service providers, regulators, enterprises, and content providers worldwide. iconectiv is also the global leader in providing numbering solutions and most recently was designated by the U.S. Federal Communications Commission to serve as the Local Number Portability Administrator in the U.S. Per Borgklint, Senior Vice President, Chief Innovation Officer and Head of Business Unit Media, Ericsson, says: "Having a U.S. partner as co-owner strengthens our ability to further grow iconectiv's business and create value in a dynamic market."
"iconectiv has emerged as the trusted partner for global network operators," said Andrew Kowal, Partner at Francisco Partners. "We look forward to a strong partnership with Ericsson and the iconectiv management team."
Francisco Partners is a leading global private equity firm, which specializes in investments in technology businesses. Since its launch over 17 years ago, Francisco Partners has raised over USD 10 billion in capital and invested in nearly 200 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in opportunities where its deep knowledge and operational expertise can help companies realize their full potential.
iconectiv is built on assets from Telcordia, a company Ericsson acquired in 2012, and has since grown into a substantial business. Francisco Partners will invest USD 200 million to acquire a 16.7% ownership at an implied valuation of approximately USD 1.20 billion.
Ericsson AB (Nasdaq: ERIC)