- Ericsson's IoT Accelerator and Connected Vehicle Cloud
businesses and related assets to be transferred to Aeris.
- Through the transaction, Aeris will become a market leader in
IoT with strong synergies to create an unparalleled IoT offering
for enterprises and new revenue streams for communications service
providers.
- Ericsson's IoT employees to become part of Aeris at the closing
of the transaction which is expected in Q1 of 2023.
- The divestment and other portfolio adjustments will have a
one-off negative EBIT impact of SEK 1.1
billion in Q4 in Ericsson's Segment Enterprise and will
eliminate losses in Business Area Technologies and New Businesses,
part of Segment Enterprise.
STOCKHOLM, Dec. 7, 2022 /PRNewswire/ -- Ericsson (NASDAQ:
ERIC) and Aeris Communications, a leading provider of Internet of
Things (IoT) solutions based in San Jose,
California, have signed an agreement for the transfer of
Ericsson's IoT Accelerator and Connected Vehicle Cloud
businesses.
Ericsson IoT Accelerator is used by over 9,000 enterprises to
manage more than 95 million connected devices with 22 million eSIM
connections globally. These enterprises and connections leverage
Ericsson's growing ecosystem of over 35 communications service
provider partners for global IoT cellular connectivity. Connected
Vehicle Cloud is the most complete connected car platform on the
market today, with frontrunners in automotive IoT using it to
connect six million vehicles and counting across 180 countries.
Founded in 1996, Aeris is an expert in the IoT field, providing
businesses with intelligent IoT cellular connectivity. Its solution
stack is being brought to the market through an ecosystem of
channel partners, communications service providers and direct sales
organizations. Aeris' Intelligent IoT Network, targeting industry
verticals such as transportation, energy, automotive and
healthcare, gives communications service providers the opportunity
to monetize new services on top of connectivity enabled by the IoT
Accelerator. The company has already teamed up with several leading
communication service providers including Softbank, AT&T,
T-Mobile, and Vodafone, and is also working with leading automotive
original equipment manufacturers.
Together, Aeris' and Ericsson's IoT platforms will connect over
100 million IoT devices worldwide, covering 190 countries. For
customers, this provides the stability, reliability and global
scale needed to support the full lifecycle of IoT programs across
multiple industries, use cases and geographies. Through the
transaction, Aeris will become a market leader in IoT, generate
strong market synergies, and further simplify IoT for 9,400
enterprises by providing them with a global, feature rich platform
with secure, reliable, and intelligent IoT solutions. To
communications service providers, the transaction of Ericsson's IoT
businesses to Aeris will result in a strong partner that continues
to provide their customers with a leading IoT connectivity
platform, while also offering new value-added services to help grow
IoT revenue streams.
Åsa Tamsons, Head of Business Area Technologies & New
Businesses at Ericsson, says: "Aeris has been successful in
extending its IoT solution offering beyond connectivity and has the
right focus, assets, and capabilities to realize the full value
creation potential of Ericsson's IoT business and its strong market
presence. 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. The combined business will offer an unparalleled IoT
platform for enterprises and new revenue streams for communication
service providers, ultimately benefiting Ericsson's customers.
Aeris is a good home for our IoT business."
With the cellular IoT market being a rather fragmented sector, a
consolidation of two industry leading players is expected to
accelerate the IoT market overall. IoT will be a fundamental and
growing part of the 4G and 5G market.
Marc Jones, President and CEO of
Aeris, says: "Building the best technology to support the success
of our customers and drive innovation in the IoT space have always
been at the forefront for Aeris. Our intelligent, software defined
IoT network and Ericsson's leading connectivity management platform
will provide the leading IoT technology stack in the industry. We
look forward to bringing these new, transformational IoT solutions
and Ericsson's IoT Accelerator and Connected Vehicle Cloud products
to our customers."
The transaction includes the transfer of Ericsson's assets and
employees in its IoT business to Aeris. In addition, Ericsson
intends to support Aeris with transition services and will acquire
a small stake in the company. The transaction is expected to close
in the first quarter of 2023.
The IoT business, with 2022 full year forecasted net sales of
SEK 0.8 billion, has been the key
driver of the losses in Business Area Technologies and New
Businesses in the Enterprise segment. The transaction will
eliminate quarterly losses of SEK 0.25
billion. The divestment, related cost and other portfolio
optimizations will lead to a negative one-time EBIT impact of
SEK 1.1 billion in Q4 2022, of which
80 percent being cash and the majority occurring in Q1 2023. The
IoT business will be transferred to Segment Other in Q1 2023 in
anticipation of closing of the transaction, with an expected EBIT
loss of SEK 0.25 billion during the
first quarter.
More information about Aeris Communications
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ABOUT ERICSSON:
Ericsson enables communications service providers and
enterprises to capture the full value of connectivity. The
company's portfolio spans the following business areas: Networks,
Cloud Software and Services, Enterprise Wireless Solutions, Global
Communications Platform, and Technologies and New Businesses. It is
designed to help our customers go digital, increase efficiency and
find new revenue streams. Ericsson's innovation investments have
delivered the benefits of mobility and mobile broadband to billions
of people globally. Ericsson stock is listed on Nasdaq Stockholm
and on Nasdaq New York.
www.ericsson.com
The following files are available for download:
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Aeris to acquire IoT
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