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Flex Acquires Ericsson's Power Modules Business
June 23, 2017 | EricssonEstimated reading time: 1 minute
Ericsson has signed an agreement with multinational technology and Sketch-to-Scale solutions provider, Flex, to divest Ericsson Power Modules (EPM). The divestment is in line with Ericsson's focused business strategy 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 Corporation Ltd, 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.
Christian Hedelin, Head of Strategy, Business Area Networks, Ericsson, says, "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, comments, "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. In addition to enhancing our power capabilities and Sketch-to-Scale solutions, we look forward to leveraging this partnership to expand our offerings to the cloud and telco data center markets."
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.
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