Ericsson Buys Kathrein’s Antenna and Filters Business
Monday, February 25, 2019 | Comments

Citing the increasing importance of antenna technology, Ericsson acquired Kathrein’s antenna and filters business. Ericsson said the transaction expands its Ericsson Radio System portfolio with new products and strengthens its antenna in-house competences and capabilities.

“The antenna domain is transforming into multiple frequencies and multiple technologies, while at the same time radios and antennas are being consolidated and even integrated to optimize the usage of site space and overall network performance,” Ericsson said in a statement. “In addition, with more powerful 5G networks coming, this impacts antenna technology development further to provide the needed performance, capacity and coverage.”

Kathrein, with headquarters in Rosenheim, Germany, was founded in 1919 and is an existing Ericsson supplier. The antenna and filters business has a strong research and development (R&D) organization coupled with an intellectual property rights (IPR) portfolio. In addition to broadening Ericsson's portfolio of antenna and filter products, the acquisition will bring vital competence for the evolution of advanced radio network products.

The acquisition will include Kathrein's antenna and filter business for mobile networks and will add around 4,000 highly skilled professionals in R&D, production, and sales based in more than 20 locations, including Germany, Romania, the U.S., Mexico and China.

The acquisition is an asset deal where Ericsson acquires certain assets and liabilities at closing, expected in the third quarter. Kathrein will be added as a separate unit in Business Area Networks and will be reported in Segment Networks, with a positive contribution to 2020 profitability targets.

Preliminary and unaudited revenues from the acquired part of Kathrein were about €270 million (US$306.3 million) in 2018, excluding sales to Ericsson. The parties have agreed to keep the purchase price undisclosed.

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