(Adds analyst comment, background)
March 7 (Reuters) - Swedish mobile telecom gear maker Ericsson on Tuesday said private equity firm Francisco Partners will invest $200 million for a 16.7 percent stake in its iconectiv subsidiary, valuing the business at around $1.2 billion.
* Ericsson said iconectiv, part of its media segment, is built on assets from Telcordia, which Ericsson acquired in 2012 for $1.15 billion.
* iconectiv is based in the United States, has around 560 employees and sells services such as number portability to telecom operators, an Ericsson spokesman said.
* "Having a U.S. partner as co-owner strengthens our ability to further grow iconectiv's business and create value in a dynamic market," Per Borgklint, head of Ericsson's media segment, said in a statement.
* "This move both shows some value creation while also reducing the risk for Ericsson iconectiv to lose out the important U.S. number portability deal," said Handelsbanken analyst Daniel Djurberg.
* Ericsson's media segment stands for around 5 percent of Ericsson's total sales, which were 223 billion Swedish crowns ($24.7 billion)in 2016.
* Ericsson said private equity firm Francisco Partners will invest $200 million to acquire a 16.7 pct ownership at an implied total valuation of iconectiv of approximately $1.20 billion.
* Ericsson said the $200 million will be transferred to Ericsson as a dividend, which it expects to receive in Q3 2017.
* Ericsson said the transaction has no material impact on Ericsson group income. Source text for Eikon: Further company coverage: ($1 = 9.0085 Swedish crowns) (Reporting By Olof Swahnberg; editing by Johannes Hellstrom)