Ericsson has announced the sale of its unprofitable Internet of Things (IoT) division to Aeris Communications, an IoT solutions supplier.
The Swedish telecom equipment provider claimed that the transaction, which covers its IoT Accelerator and Connected Vehicle Cloud operations, will end the businesses’ past quarter-to-quarter losses of almost $24 million.
Over 9,000 businesses use Ericsson’s IoT Accelerator to handle 22 million eSIM connections and over 95 million connected devices worldwide. For worldwide IoT cellular connectivity, these businesses and relationships make use of Ericsson’s current network of over 35 communications service provider partners.
The Connected Vehicle Cloud business, in the meantime, is said to be the most comprehensive connected car platform available today, with automotive IoT leaders utilizing this service to connect over six million vehicles across 180 countries.
More than 100 million IoT devices will be connected across 190 countries using Aeris and Ericsson’s combined IoT systems. Customers should benefit from this consolidation, as it offers the stability, dependability and global scale required to support IoT initiatives throughout their entire lifespan across a variety of sectors, use cases and regions.
Åsa Tamsons, Head of Business Area Technologies & New Businesses at Ericsson, commented: “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. 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.”
“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,” said Marc Jones, President and CEO of 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 is expected to be finalized in the first quarter of 2023, with Ericsson acquiring a modest interest in Aeris. The sale’s financial details were not disclosed.