Aeris Communications To Buy Ericsson's IoT Accelerator And Connected Vehicle Cloud Businesses

(RTTNews) - Aeris Communications, an Internet of Things (IoT) solutions provider based in San Jose, California, and Ericsson (ERIC) have reached a deal for the transfer of Ericsson's IoT Accelerator and Connected Vehicle Cloud businesses.

The combination of Aeris and Ericsson's IoT platforms will connect over 100 million IoT devices worldwide, covering 190 countries, and provide IoT connectivity, software and solutions to thousands of enterprises.

Åsa Tamsons, Head of Business Area Technologies & New Businesses at Ericsson, stated: "Aeris has been successful in extending its IoT solution offering beyond connectivity and has the right focus, assets, and capabilities to realize the full potential of Ericsson's IoT business and its strong market presence. Despite significant investments to address the fragmentation of the IoT market, Ericsson has only tapped into a limited part of the value chain, limiting the returns of such investments. The combined business will offer an unparalleled IoT platform for enterprises and new revenue streams for communication service providers, ultimately benefiting Ericsson's customers. Aeris is a good home for our IoT business."

The transaction is expected to close in the first quarter of 2023 and includes the transfer of employees from Ericsson to Aeris. In addition, Ericsson intends to support Aeris with transition services and will acquire a minority stake in the company.