Ericsson has sold its loss making IoT business to Aeris Communications, a provider of Internet of Things (IoT) solutions based in San Jose, California.

Over 9,000 enterprises use Ericsson IoT Accelerator to manage more than 95 million connected devices with 22 million eSIM connections globally. These enterprises and connections use Ericsson’s ecosystem of over 35 communications service provider partners for IoT cellular connectivity.

Aeris’ Intelligent IoT Network, targeting industry verticals such as transportation, energy, automotive and healthcare, gives communications service providers the opportunity to monetize new services on top of connectivity enabled by the IoT Accelerator.

Aeris has teamed up with several leading communication service providers including Softbank, AT&T, T-Mobile, and Vodafone, and is working with leading automotive original equipment manufacturers.

Aeris’ and Ericsson’s IoT platforms will connect over 100 million IoT devices worldwide, covering 190 countries. Aeris will become a market leader in IoT, generate strong market synergies, and further simplify IoT for 9,400 enterprises.

Ericsson aims to support Aeris with transition services and will acquire a small stake in the company. The transaction is expected to close in the first quarter of 2023.

Ericsson’s IoT business, with 2022 forecasted sales of SEK 0.8 billion, is key driver of the loss in Business Area Technologies and New Businesses in the Enterprise segment. The transaction will eliminate quarterly loss of SEK 0.25 billion.