According to Ericsson’s official website, the company has signed an agreement with the US Internet of Things vendor Aeris Communications to transfer Ericsson’s Internet of Things and connected car cloud business, related businesses, assets and personnel will be transferred to Aeris, and the transaction is expected to be completed in the first quarter of 2023, the transfer consideration was not disclosed. Ericsson’s iot business currently generates about SEK 800 million in annual revenue.

Currently, Ericsson iot solutions are used in more than 95 million connected devices, the connected car sector, and its connected car cloud business is said to have connected 6 million cars.

Asa Tamsons, Head of Technology & New Business at Ericsson Business Area, said: “Aeris has successfully extended its iot solutions beyond connectivity and has the right focus, assets and capabilities to realize the full value creation potential of Ericsson’s iot business and its strong market impact. Despite significant investments to address the fragmentation of the iot market, Ericsson has only entered a limited part of the value chain, limiting the return on such investments. The combined business will provide enterprises with an unparalleled iot platform and a new revenue stream for communications service providers, ultimately benefiting Ericsson’s customers. Aeris is the ideal home for our iot business.”

Marc Jones, President and CEO of Aeris, said: “Building the best technology to support our customers’ success and drive innovation in the iot space has always been a top priority for Aeris. Our intelligent software-defined iot network and Ericsson’s leading connection management platform will deliver the industry’s leading iot technology stack. We look forward to bringing these new and transformative iot solutions as well as Ericsson’s iot accelerators and connected car cloud offerings to our customers.”