iconectiv Strengthened by Francisco Partners Investment
March 09, 2017
Ericsson’s (News - Alert) iconectiv has been making a name for itself lately as the go-to for all your fraud and identity needs. The company’s solutions are used by more than 1,200 service providers, regulators, enterprises and content providers worldwide, and work to enable operators to connect networks. Additionally, iconectiv (News - Alert) is also a major player when it comes to numbering solutions, and was recently designated by the U.S. Federal Communications Commission to serve as the Local Number Portability Administrator in the U.S.
With a record like that, it’s no wonder other companies are showing interest in iconectiv. That’s why it comes as no surprise that Ericsson announced this week that it has secured a minority investment in iconectiv from Francisco Partners, a technology investment firm. Francisco Partners has quite an impressive track record itself, having raised over $10 million in capital and invested in nearly 200 technology companies over the past 17 years. The hope is that Francisco Partners will not only invest financially in iconectiv, but that it will also bring some of its operational expertise to the company, thus allowing it to reach its full potential.
Francisco Partners hopes to make a difference in iconectiv’s future, and is looking forward to the opportunity, with Andrew Kowal, Partner at
Francisco Partners, saying, “iconectiv has emerged as the trusted partner for global network operators…We look forward to a strong partnership with Ericsson and the iconectiv management team.”
The specifics of the investment are as follows: Francisco Partners will invest $200 million to acquire a 16.7 percent ownership at an implied valuation of approximately $1.20 billion. The $200 million will be transferred to Ericsson as a dividend, which Ericsson expects to receive in Q3 2017. The investment is subject to regulatory approval and is expected to close in the third quarter of 2017.
This deal seems to be a win for iconectiv, and all companies involved seem to be excited about the investment. Per Borgklint, Senior Vice President, Chief Innovation Officer and Head of Business Unit Media, Ericsson, is looking forward to the possibilities this investment offers, saying, “Having a U.S. partner as co-owner strengthens our ability to further grow iconectiv`s business and create value in a dynamic market.”
Hopefully this investment will help iconectiv become an even more powerful player in all its endeavors, especially in the fraud and identity space.
Edited by Stefania Viscusi
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