Swedish vendor Ericsson reached an agreement last week to sell its US subsidiary, iconectiv, to Koch Equity Development, for SEK 10.6 billion ($1bn).
Ericsson first acquired iconectiv back in 2012 as part of Ericsson's acquisition of telecom software specialist Telcordia for $1.15bn.
iconectiv, which has been co-owned with private equity firm Francisco Partners since 2017, serves more than 5,000 customers across various sectors.
The New Jersey-based company provides network number portability solutions and data exchange services.
Ericsson noted that it expects to book a one-off EBIT benefit of approximately SEK 8.8bn ($800 million) once the transaction closes.
The deal is subject to regulatory approval, but tipped to complete during the first half of next year.
Ericsson, led by Börje Ekholm, has already sold off many of the assets acquired by former CEO Hans Vestberg.
In 2022, the vendor sold its IoT Accelerator and Connected Vehicle Cloud businesses to California-based Aeris.
Last month, Ekholm took the blame for the company writing off nearly $4 billion of its $6.2bn investment in Vonage Holdings.
Ericsson acquired cloud communication provider Vonage in 2022.
Since then, the company has recorded two noncash impairment charges on its acquisition of Vonage; one of $2.9 billion in 2023 and another of $1.09 billion last month.
