Ericsson to Sell Loss-Making Internet of Things Business to Aeris Communications
07 December 2022 - 10:41PM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Ericsson AB said Wednesday that it will sell its
loss-making internet of things business to California-based Aeris
Communications.
The Swedish telecommunications-equipment company said the sale,
which includes its IoT accelerator and connected vehicle cloud
businesses, will put a stop to quarterly losses of around 250
million Swedish kronor ($24 million) that the businesses have been
costing.
"Despite significant investments to address the fragmentation of
the IoT market, Ericsson has only tapped into a limited part of the
value chain, limiting the returns of such investments," Asa
Tamsons, head of technologies & new businesses at Ericsson,
said.
The divestment, related cost and other portfolio optimizations
will lead to a negative one-time earnings before interest and tax
impact of SEK1.1 billion in the fourth quarter of 2022, Ericsson
said.
The deal is expected to close in the first quarter of 2023 and
Ericsson said it plans to acquire a small stake in Aeris.
Financial terms of the sale weren't disclosed.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
December 07, 2022 06:26 ET (11:26 GMT)
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