Ericsson announced it is selling iconectiv, “a leading provider in number portability solutions,” in a deal worth $1 billion.

Ericsson acquired iconectiv in 2012, and is a profitable segment of the Swedish firm. In 2023 alone, iconectiv accounted for $100 million in profit for Ericsson. Nonetheless, according to the company, iconectiv doesn’t fit in well with the rest of Ericsson’s portfolio.

iconectiv is a US subsidiary of Ericsson acquired in 2012 as part of the Telcordia acquisition. Since 2017, iconectiv has been co-owned with private equity firm Francisco Partners. iconectiv serves over 5,000 customers across various sectors as a leading provider in number portability solutions, and a provider of core network and operations management, numbering and data exchange services as its main segments, and with limited strategic synergies with the rest of Ericsson’s portfolio.

Ericsson is selling iconectiv to Koch Equity Development LLC for $1 billion, with an estimated benefit to Ericsson of $800 million.

The deal is expected to close in the first half of 2025.