L.M. Ericsson Telephone yesterday announced an agreement to sell its Energy Systems business unit to US-based Emerson Electric for around $US725 million in cash.
The transaction is expected to be completed in this year's second quarter, the Stockholm-based telecommunications equipment provider said in a statement. The deal is part of Ericsson's strategy to focus on mobile telephony and the Internet, the company said.
Based in Stockholm, the Ericsson Energy Systems business unit has 2200 employees worldwide, and had sales revenue of around $US500 million for 1999, Ericsson said.
The Energy Systems unit's main business is the design, manufacture and marketing of power supplies and power systems for radio base stations for mobile telephony, switching equipment and other telecommunications facilities. The sale includes all of Energy Systems' activities, except its DC/DC power modules business which will be incorporated into Ericsson's Microelectronics unit, the company said.