Ericsson Closes Buyout Of Kathrein's Antenna & Filter Business
Zacks Investment Research | Oct 02, 2019 11:21PM ET
Ericsson (BS:ERICAs) (NASDAQ:ERIC) announced that it has completed the acquisition of the antenna and filter division of Kathrein. Headquartered in Rosenheim, Germany, the acquiree is a leading provider of antenna and filter technologies worldwide. The parties had agreed to keep the purchase price undisclosed.
On Feb 25, 2019, the Swedish telecom equipment maker communicated its intention to buy Kathrein’s antenna and filter business. The company remains on track to provide its customers with a broadened Ericsson Radio System. In addition to enhancing its portfolio of antenna and filter products, the buyout will bring crucial competence required to evolve radio access products.
With more focus on the antenna and filter business, Ericsson plans to expand its offering to further optimize site space, which is important for the introduction of 5G. The company has purchased an organization focusing on R&D, production and sales, based in more than 20 locations including Germany, Romania, the United States, Mexico and China.
With most of the professionals based in Europe, Ericsson has complemented its strong R&D base across 21 locations on the continent. The acquired business is now added as a separate unit in Business Area Networks and is going to be reported in Segment Networks, with an expected positive contribution to 2020 profitability targets.
Ericsson continues to execute its strategy and is well on track to achieve its 2020 financial goals. The company is investing in its comprehensive 5G-ready portfolio to enable communication service provider’s seamless migration to 5G technology. Its investments in R&D over the past years have secured a competitive and industry-leading offering. Artificial intelligence and automation remain key enablers for its future business development, creating customer and shareholder value.
Ericsson has been focusing on 5G system development and has undertaken several notable endeavors to position itself for market leadership. The growth in 5G subscriptions is estimated to be the fastest in North America with 63% of projected mobile subscriptions within the next five years, followed by North East Asia with 47% and Europe with 40%.
As 5G devices increasingly become available and more 5G networks go live, more than 10 million subscriptions are estimated globally by the end of 2019. Ericsson has been working with operators to help in their network modernization, while optimizing on plenty of opportunities.
Ericsson’s shares have lost 12.2% against the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.