- Ownership of fiber cable and duct business in New Zealand to transfer from Ericsson to Hexatronic
- All 19 employees will be offered employment in the continuing business
Ericsson (NASDAQ:ERIC, news, filings) and Hexatronic Group AB (publ) ("Hexatronic") have signed an agreement for Hexatronic to acquire the Ericsson fiber cable and duct business in Wellington, New Zealand. Hexatronic offers all 19 Ericsson employees who are currently employed in the business, employment in the contining business.
Hexatronic intends to operate and develop the existing fiber cable and duct business in New Zealand on a long-term basis. The acquisition takes place as a transfer of business and the new company will be named Hexatronic New Zealand Ltd. Hexatronic will take over the existing customer accounts from Ericsson.
Tomas Qvist, Head of Supply of Ericsson in China, says: "We are pleased to have reached an agreement with Hexatronic. We have good experience with the company having previously sold other parts of our cable business to them. For Ericsson, this is another step in our strategy to phase out our cable business."
It is great to confirm that Hexatronic will offer all 19 employees continued employment and will further develop the business in New Zealand through integration of the fiber facility with the entire Hexatronic system and product offerings”.
The transaction has no significant impact on Ericsson’s financials.
Closing of the transaction is expected during the third quarter of 2016.
Ericsson continues to grow our business in New Zealand supporting telecommunications and broadcast customers.
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