Ericsson, one of the world’s largest communications technology companies, has announced that it has sold its Internet of Things (IoT) business to Aeris, a global IoT leader in enterprise and automotive solutions. This is part of Ericsson’s strategy to further focus on its core network and digital services businesses.

The acquisition will combine Aeris' extensive expertise in IoT with Ericsson's extensive knowledge of communications networks, providing customers with greater access to innovative IoT solutions.

Aeris can extend its customer base and expand its presence in the automotive and enterprise IoT markets, as well as gain access to Ericsson's extensive customer relationships.

This sale represents an important milestone for Ericsson and Aeris and sets the stage for significant opportunities for both companies.

Since 1996, Aeris has specialized in IoT and providing businesses with intelligent cellular connectivity, a category with major potential in the coming years. For starters, it has worked with major mobile phone providers such as Softbank, AT&T, Vodafone, and T-Mobile.

Per Ericsson, they will post a one-time charge of $106 million regarding the purchase, and the acquisition is anticipated to close within Q1 2023.

With Ericsson’s IoT Accelerator, more than 95 million connected devices and 22 million eSIM connections are managed globally by more than 9,000 enterprises. Its CVC unit connects six million vehicles to the internet across 180 countries and regions.

Åsa Tamson, Head of Business Area Technologies & New Businesses at Ericsson, says: “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.

"Despite significant investments to address the fragmentation of the IoT market, Ericsson has only tapped into a limited part of the value chain, limiting the returns of such investments. The combined business will offer an unparalleled IoT platform for enterprises and new revenue streams for communication service providers, benefiting Ericsson’s customers. Aeris is a good home for our IoT business.” Tamson Added.

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