Ericsson Plans to Sell Iconectiv for $1,5 to $2 Billion

According to media reports, Ericsson initiated a process to sell US call routing subsidiary Iconectiv for between $1.5 billion and $2 billion. The company entered into talks with an unnamed financial adviser about divesting.

Iconectiv has existed as a brand for seven years. In January 2012 Ericsson acquired OSS and BSS vendor Telcordia for $1 billion. In February 2013, Ericsson announced that Telcordia’s interconnection business, known previously as Telcordia Interconnection Solutions, was to be renamed iconectiv.

While potential sale of iconectiv is in line with CEO Borje Ekholm’s long-term strategy, the move could also be prompted by pressure from activist investor Cevian Capital, which has demanded several strategic moves including the divestment of the business. Iconectiv’s website states it uses a cloud-based model and communications platform to develop connectivity solutions for network and operations management, numbering, B2C communications and fraud prevention.