Ericsson To Divest Power Modules Unit To Flex - Quick Facts

(RTTNews) - Ericsson (ERIC) announced an agreement with Flex to divest Ericsson Power Modules. The Ericsson Power Modules business, excluding the brand, will on closing be transferred to Flex. 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.

Ericsson said the divestment is in line with the company's focused business strategy, presented on March 28, to strengthen its core business and portfolio areas (networks, digital services and IoT).

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.