Ericsson to divest its power modules business to Flex
(Thomson Reuters ONE) -
* Transaction expected to close in the third quarter of 2017
* A workforce of over 300 people to move from Ericsson to Flex Power, a
division within Flex
* Divestment in line with Ericsson's previously-announced business strategy of
focusing on core portfolio areas
Ericsson (NASDAQ:ERIC) has signed an agreement with multinational technology and
Sketch-to-Scale(TM) solutions provider, Flex, to divest Ericsson Power Modules
(EPM). The divestment is in line with Ericsson's focused business strategy,
presented on March 28, to strengthen its core business and portfolio areas
(networks, digital services and IoT).
The Ericsson Power Modules business, excluding the brand, will on closing be
transferred to Flex as part of the agreement. This includes Shanghai Ericsson
Electronics Corporation Ltd, a manufacturing site in China, and business assets
in Sweden. More than 300 employees and consultants are expected to transfer from
Ericsson to Flex Power.
Christian Hedelin, Head of Strategy, Business Area Networks, Ericsson, says:
"Ericsson Power Modules with its skilled people has built a strong position and
offering within the power industry. But, in line with our strategy, we are
focusing our business on fewer core areas. The power modules business is a
perfect fit for Flex, and we look forward to working together to ensure a smooth
transition and a lasting relationship."
Nate Vince, President of Flex Power, says: "We are very pleased to be expanding
our collaborative and successful long-standing partnership with Ericsson, while
adding the talented and industry-leading Power Module team to Flex. In addition
to enhancing our power capabilities and Sketch-to-Scale solutions, we look
forward to leveraging this partnership to expand our offerings to the cloud and
telco data center markets."
The transaction is expected to close in the third quarter of calendar year 2017
and is subject to customary closing conditions, including regulatory approvals.
Ericsson Power Modules designs and manufactures power supply products for
information and communications equipment, including radio base stations,
switches and routers, as well as additional computing and industrial
applications.
Flex operates in the power segment with Flex Power, delivering power supply
products to a wide range of markets, with some of the world's biggest brands as
customers. Flex is the Sketch-to-Scale(TM) solutions provider that designs and
builds Intelligent Products for a Connected World(TM). With approximately
200,000 professionals across 30 countries, Flex provides innovative design,
engineering, manufacturing, real-time supply chain insight and logistics
services to companies of all sizes in various industries and end-markets. For
more information, visit flex.com.
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Ericsson is a world leader in communications technology and services with
headquarters in Stockholm, Sweden. Our organization consists of more than
111,000 experts who provide customers in 180 countries with innovative solutions
and services. Together we are building a more connected future where anyone and
any industry is empowered to reach their full potential. Net sales in 2016 were
SEK 222.6 billion (USD 24.5 billion). The Ericsson stock is listed on Nasdaq
Stockholm and on NASDAQ in New York. Read more on www.ericsson.com.
Ericsson to divest its power modules business to Flex:
http://hugin.info/1061/R/2114700/804616.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ericsson via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 21.06.2017 - 09:15 Uhr
Sprache: Deutsch
News-ID 549039
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