Ericsson To Buy Kathrein's Antenna And Filters Business; Terms Undisclosed

(RTTNews) - Swedish telecom equipment maker Ericsson (ERIC) announced Monday the acquisition of Germany-based Kathrein's antenna and filters business. The parties have agreed to keep the purchase price undisclosed.

The acquisition will include Kathrein's antenna and filter business for mobile networks. It will add around 4,000 highly-skilled professionals in R&D, production, and sales based in more than 20 locations, including Germany, Romania, the U.S., Mexico and China.

With the purchase, Ericsson expands its Ericsson Radio System portfolio with new products and strengthens its antenna in-house competences and capabilities.

The acquisition is an asset deal where certain assets and liabilities are acquired by Ericsson at closing, which is expected in the third quarter of fiscal 2019. It will be added as a separate unit in Business Area Networks and will be reported in Segment Networks, with a positive contribution to 2020 profitability targets.

The closing of the acquisition is subject to customary conditions and approvals from relevant regulatory authorities.

Kathrein is a provider of antenna and filter technologies and is an existing Ericsson supplier. The antenna and filters business has a strong R&D organization with extensive experience in antenna design and research, coupled with a strong IPR portfolio.

Preliminary revenues from the acquired part of Kathrein were approximately 270 million euros in 2018, excluding sales to Ericsson.