Ericsson announced that it has closed the divestment of its MediaKind business to the private equity firm One Equity Partners.
MediaKind was rebranded from Ericsson Media Solutions as an independent brand after the announcement of sale of the division to One Equity Partners last year. As previously announced, One Equity Partners becomes majority owner, while Ericsson has 49% of the shares.
In partnering with One Equity Partners, MediaKind is established as a leading independent video technology company with strong and committed financial support.
The transaction will generate a positive impact on operating income in Q1 2019 that with current visibility is estimated to SEK 0.4 – 0.6 b. and will be reported in Segment Emerging Business and Other.
As of February 1, 2019, Ericsson’s 49% share of MediaKind results will be reported as share in earnings of JV and associated companies in Segment Emerging Business and Other. MediaKind was in 2018 reported as part of Segment Emerging Business and Other, as part Ericsson Media Solutions.