Ericsson to exit certain cloud contracts

 Last week, Ericsson announced its intention to to exit certain subscale agreements and product offerings in its Cloud Software and Services group.

The exit is expected to have with a one-off negative impact on EBIT of SEK -0.8 b. in Q4 2022, of which SEK -0.7 b. is expected to impact cash flow, mainly in 2023.

Ericsson said the move is in-line with the strategy outlined at in Capital Markets Day in December, when the company highlighted key priorities such as limiting subscale software development, accelerating automation to lower deployment and maintenance efforts and changing focus from market share gains to profitable business.

Ericsson’s Q4 and full-year 2022 results will be published January 20 at approximately 7:00 am CET.

www.ericsson.com/en/press-releases/2022/12/ericsson-capital-markets-day-2022

Ericsson to divest IoT Accelerator and Connected Vehicle Cloud to Aeris

Wednesday, December 07, 2022  Aeris, Ericsson, IOT, Mergers And Acquisitions  

Ericsson will divest its IoT Accelerator and Connected Vehicle Cloud businesses to Aeris,The IoT business, with 2022 full year forecasted net sales of SEK 0.8 billion, has been the key driver of the losses in Business Area Technologies and New Businesses in the Enterprise segment. The transaction will eliminate quarterly losses of SEK 0.25 billion. The divestment, related cost and other portfolio optimizations will lead to a negative one-time EBIT...

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