Koch Equity Development LLC (“KED”), the principal investment and acquisition arm of Koch, Inc., today announced an agreement to acquire iconectiv, LLC, a telecommunications solutions leader, from Ericsson (NASDAQ: ERIC), the global supplier of mobile communication and connectivity solutions for service providers and enterprises, and affiliates of Francisco Partners, a leading technology investment firm.
Under the agreement, iconectiv will become a wholly-owned independent subsidiary of KED and will continue to be managed by iconectiv’s leadership team based in Bridgewater, New Jersey. The agreement to acquire iconectiv underscores KED’s continued investment focus on telecommunications software and data services, building on the successful 2021 acquisition of Transaction Network Services, Inc. (“TNS”). With KED’s resources and capital, iconectiv will be well-positioned to unlock both organic and inorganic growth opportunities.
iconectiv is the authoritative partner to many of the largest communications service providers in the United States and international markets. Its core network and operations management, numbering and data exchange services span trusted communications, digital identity management and fraud prevention. The world leader in providing number portability solutions, iconectiv is the number portability administrator in 10 countries, including the United States. The company is also the trusted technology partner to CTIA, the wireless trade association in the United States, serving as the administrator of the nation’s Short Code Registry. Working with the Alliance for Telecommunications Industry Solutions (ATIS), iconectiv serves as the Secure Telephone Identity Policy Administrator (STI-PA) for the United States, a critical role in industry efforts to mitigate illegal robocalling.
“iconectiv is excited to join KED along with the resources and capabilities they have to support our next chapter of growth. This acquisition marks a significant milestone in our journey, aligning us with a shareholder focused on long-term value creation that extends our track record as a trusted partner to service providers and regulators in the communications sector,” said Richard Jacowleff, CEO of iconectiv. “On behalf of iconectiv, we want to thank Ericsson and Francisco Partners for their many years of support. We believe KED is the right partner for our employees and the company to continue executing our long-term vision by providing reliable and trusted communications solutions to our customers globally.”
“We have been impressed with the solutions iconectiv continues to deliver, and we are thrilled to welcome Rich and team to the KED platform,” said Matt Hewitt, Managing Director at KED. “iconectiv’s innovative culture, technical expertise, and customer focus align with KED’s vision for expanding our capabilities in telecommunications and technology. We look forward to supporting their continued growth and helping them deliver even greater value to their customers.”
The transaction is subject to certain regulatory approvals and is expected to close in the first quarter of 2025. Rothschild & Co and Citi served as financial advisors to KED, and Jones Day served as legal advisor to KED. Jefferies LLC and Goldman Sachs & Co. LLC served as financial advisors to iconectiv, and Latham & Watkins LLP served as legal advisor to iconectiv.
