Koch Equity Development has acquired communication services firm iconectiv from Ericsson and investment firm Francisco Partners.
Headquartered in the US, iconectiv services are used by more than 5,000 service providers, regulators, enterprises, and content providers worldwide, to keep their networks, devices and applications connected. Amongst other things, iconectiv is the number portability administrator in ten countries, including the US.
Under the acquisition agreement, iconectiv will become a wholly-owned independent subsidiary of Koch, and will continue to be managed by iconectiv's leadership team based in Bridgewater, New Jersey. “With our resources and capital, iconectiv will be well-positioned to unlock both organic and inorganic growth opportunities,” said Koch.
iconectiv’s core network and operations management, numbering and data exchange services span trusted communications, digital identity management and fraud prevention, aiding industry efforts to mitigate illegal “robocalling”.
"This acquisition marks a significant milestone in our journey, aligning us with a shareholder focused on long-term value creation that extends our track record as a trusted partner to service providers and regulators in the communications sector," said Richard Jacowleff, CEO of iconectiv.
Ericsson's cash benefit from the transaction, after the settlement of anticipated taxes, transaction expenses, and other liabilities, is expected to be around $1bn. It expects to record a one-off EBIT benefit of $800m on close.
