Ericsson Completes Divestment of Majority Stake in MediaKind

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Feb 01, 2019, 16:10 ET

STOCKHOLM, Sweden, Feb. 1, 2019 /PRNewswire/ --

Completes transfer of MediaKind business to One Equity Partners
After transaction on January 31, 2019, Ericsson has 49% ownership of the transferred business
Positive impact on operating income in Q1 2019 is estimated to SEK 0.4 – 0.6 b.

Ericsson (NASDAQ: ERIC) has closed the divestment of its MediaKind business to the private equity firm One Equity Partners. As previously announced, One Equity Partners becomes majority owner, while Ericsson has 49% of the shares after the transaction on January 31, 2019.

In partnering with One Equity Partners, MediaKind is established as a leading independent video technology company with strong and committed financial support.

The transaction will generate a positive impact on operating income in Q1 2019 that with current visibility is estimated to SEK 0.4 – 0.6 b. and will be reported in Segment Emerging Business and Other.

As of February 1, 2019, Ericsson's 49% share of MediaKind results will be reported as share in earnings of JV and associated companies in Segment Emerging Business and Other. MediaKind was in 2018 reported as part of Segment Emerging Business and Other, as part Ericsson Media Solutions. Please see Q4 2018 earnings report for more details.

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Ericsson enables communications service providers to capture the full value of connectivity. The company's portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson's investments in innovation have delivered the benefits of telephony and mobile broadband to billions of people around the world. The Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com

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SOURCE Ericsson