Ericsson plans to sell its defense business division to Saab for $512 million.(Ericsson announced selling its defense business unit to Swedish Saab)(Brief article)

European Telecom, July, 2006

Ericsson announced that it would be selling its defense business unit to Swedish Saab for $512 million. The group is selling Ericsson Microwave Systems as well as its 40 percent holding in Saab Ericsson Space, while still retaining its National Security and Public Safety business. The Ericsson defense business that would be acquired by the Swedish company had sales of $274 million in 2005 with reasonably good profitability.

Saab operates in defense, aviations, space, and civil security. In 2005, the total sales were around $2.6 billion. Carl-Henric Svanberg, CEO and president of Ericsson, said that the deal was mutually beneficial, and Ericsson core business had lesser synergies with radar development.