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Ericsson Sloughs Off Power Supply Business Unit

Ericsson is sloughing off its power module business, which designs and manufactures power supplies for communications equipment like radio base stations, switches, and routers. It is selling the unit to the San Jose-based manufacturing firm Flex.

The sale includes Shanghai Ericsson Electronics, which owns a manufacturing plant in China, and more than 300 employees and consultants. Flex did not say how much it paid in the acquisition, which is expected to close before the end of the year.

“Ericsson Power Modules with its skilled people has built a strong position and offering within the power industry,” said Christian Hedelin, head of strategy for Ericsson’s business area networks unit, in a statement. “But in line with our strategy, we are focusing our business on fewer core areas.”


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