Swedish technology company Ericsson has agreed to acquire the antenna and filters business of German manufacturer Kathrein.
With the transaction of which financial details have not been disclosed, Ericsson wants to expand its radio system portfolio with new products, in particular for 5G, and strengthen its antenna in-house competences and capabilities.
Founded in 1919 and headquartered in Rosenheim, Bavaria, Kathrein is a world leading provider of antenna and filter technologies and an existing Ericsson supplier. With the acquisition, Ericsson will add around 4,000 professionals in R&D, production and sales in more than 20 locations, including Germany, Romania, the US, Mexico and China.
The takeover is performed in the shape of an asset deal where certain assets and liabilities are acquired by Ericsson at closing, which is expected in Q3 2019. Kathrein will be added as a separate unit to Ericsson’s networks business area, with a positive contribution to 2020 profitability targets.
Preliminary and unaudited revenues from the acquired part of Kathrein were approximately €270 million in 2018, excluding sales to Ericsson.