STOCKHOLM (Reuters) - Swedish mobile telecom gear maker Ericsson (ERICb.ST) said on Wednesday it was selling its power modules business, the first exit of assets under a new strategy to focus on its core business.
The company announced the strategy in March, saying it would concentrate on its main product areas of networks, digital services and Internet of Things.
On Wednesday it said it had signed an agreement with software firm Flex (FLEX.O) to sell its power modules business, which includes a manufacturing site in China and assets in Sweden.
More than 300 employees and consultants are expected to transfer from Ericsson to Flex Power, but Ericsson did not disclose any financial details about the transaction.
“In line with our strategy, we are focussing our business on fewer core areas,” Christian Hedelin, head of strategy for Ericsson’s Networks business, said in a statement.
On Tuesday, Bloomberg, citing sources, reported that Ericsson had hired banks to explore a sale of its much larger media businesses.
Reporting by Olof Swahnberg; Editing by Niklas Pollard and Susan Fenton