Ericsson (NASDAQ:ERIC) and Hexatronic Group AB (publ) ("Hexatronic") have signed an agreement for Hexatronic to acquire the Ericsson fiber cable and duct business in Wellington, New Zealand. Hexatronic offers all 19 Ericsson employees who are currently employed in the business, employment in the contining business.
Hexatronic intends to operate and develop the existing fiber cable and duct business in New Zealand on a long-term basis. The acquisition takes place as a transfer of business and the new company will be named Hexatronic New Zealand Ltd. Hexatronic will take over the existing customer accounts from Ericsson.
Tomas Qvist, Head of Supply of Ericsson in China, says: "We are pleased to have reached an agreement with Hexatronic. We have good experience with the company having previously sold other parts of our cable business to them. For Ericsson, this is another step in our strategy to phase out our cable business."
It is great to confirm that Hexatronic will offer all 19 employees continued employment and will further develop the business in New Zealand through integration of the fiber facility with the entire Hexatronic system and product offerings”.
The transaction has no significant impact on Ericsson’s financials.
Closing of the transaction is expected during the third quarter of 2016.
Ericsson continues to grow our business in New Zealand supporting telecommunications and broadcast customers.
Notes to editors
For media kits, backgrounders and high-resolution photos, please visit www.ericsson.com/press.
Ericsson is the driving force behind the Networked Society – a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, business and society to fulfill their potential and create a more sustainable future.
Our services, software and infrastructure – especially in mobility, broadband and the cloud – are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.
With approximately 115,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world’s mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions – and our customers – stay in front.
Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2015 were SEK 246.9 billion (USD 29.4 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.
For further information, please contact
Ericsson Corporate Communications
Phone: +46 10 719 69 92
Selina O’Connor, Head of Communications Australia and New Zealand
Phone: +61 467 787970
Ericsson Investor Relations
Phone: +46 10 719 00 00