Iconectiv, a US-based telephony technology subsidiary of communucations equipment manufacturer Ericsson, secured $200m in funding on Friday from investment firm Francisco Partners in return for a 16.7% stake.
Francisco Partners has transferred the capital to Ericsson as a dividend. The two had signed the agreement in March 2017 before closing the deal last week.
Iconectiv’s technology lets clients interconnect networks, to add features such as call routing and billing, and allowing customers to keep their mobile phone number when switching operators. The platform also offers in-built fraud detection and identity verification technology.
The company’s offering is based on assets originally developed by Telcordia, which Ericsson acquired in 2012 for $1.15bn in cash. Its clients span a wide range of areas from service and content providers to government regulators, and Francisco Partners’ funding will support an accelerated growth drive.
Per Borgklint, senior vice-president, chief innovation officer and head of business unit media at Ericsson, said in March: “Having a US partner as co-owner strengthens our ability to further grow Iconectiv’s business and create value in a dynamic market.”
Andrew Kowal, partner at Francisco Partners, added at the time: “Iconectiv has emerged as the trusted partner for global network operators. We look forward to a strong partnership with Ericsson and the Iconectiv management team.”