Ericsson said Feb. 1 that it closed the divestment of MediaKind to One Equity Partners. The deal was previously announced. One Equity Partners is majority owner of MediaKind, while Ericsson has 49 percent of shares. MediaKind is an independent video technology company.
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.