Ericsson has signed an agreement with multinational technology provider, Flex, to divest Ericsson Power Modules (EPM). Flex is the Sketch-to-Scale solutions provider that designs and builds Intelligent Products for a Connected World.
The divestment is in line with Ericsson's focused business strategy, presented on March 28, to strengthen its core business and portfolio areas (networks, digital services and IoT).
The Ericsson Power Modules business, excluding the brand, will on closing be transferred to Flex as part of the agreement. This includes Shanghai Ericsson Electronics , a manufacturing site in China, and business assets in Sweden. More than 300 employees and consultants are expected to transfer from Ericsson to Flex Power.
The transaction is expected to close in the third quarter of calendar year 2017 and is subject to customary closing conditions, including regulatory approvals.
Ericsson Power Modules designs and manufactures power supply products for information and communications equipment, including radio base stations, switches and routers, as well as additional computing and industrial applications.
Flex operates in the power segment with Flex Power, delivering power supply products to a wide range of markets, with some of the world's biggest brands as customers.
Christian Hedelin, Head of Strategy, Business Area Networks, Ericsson
Ericsson Power Modules with its skilled people has built a strong position and offering within the power industry. But, in line with our strategy, we are focusing our business on fewer core areas. The power modules business is a perfect fit for Flex, and we look forward to working together to ensure a smooth transition and a lasting relationship.
Nate Vince, President of Flex Power
We are very pleased to be expanding our collaborative and successful long-standing partnership with Ericsson, while adding the talented and industry-leading Power Module team to Flex.
