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E2 Business combinations | 12 Months Ended
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Dec. 31, 2020
Disclosure Of Business Combinations [Abstract] |
E2 Business combinations |
E2 | Business combinations |
Acquisitions and divestments Acquisitions
Acquisitions 2018–2020 |  |  |  |  |  |  |
|  | 2020 |  | 2019 |  | 2018 |
Total consideration, including cash |  | 9,848 |  | 1,957 |  | 1,314 |
Net assets acquired |  |  |  |  |  |  |
Cash and cash equivalents |  | 314 |  | 142 |  | 94 |
Property, plant and equipment |  | 55 |  | 353 |  | 4 |
Right-of-use of assets |  | 126 |  | — |  | — |
Intangible assets |  | 3,583 |  | 497 |  | 481 |
Investments in associates |  | 167 |  | 101 |  | 64 |
Other assets |  | 1,292 |  | 1,357 |  | 254 |
Provisions, incl. post-employment benefits |  | (16) |  | (102) |  | — |
Other liabilities |  | (2,781) |  | (743) |  | (494) |
Total identiﬁable net assets |  | 2,740 |  | 1,605 |  | 403 |
Costs recognized in net income |  | — |  | 153 |  | — |
Goodwill |  | 7,108 |  | 199 |  | 911 |
Total |  | 9,848 |  | 1,957 |  | 1,314 |
Acquisition-related costs 1) |  | 92 |  | 85 |  | 24 |
1) | Acquisition-related costs are included in Selling and administrative expenses in the consolidated income statement.
In 2020, Ericsson made acquisitions with a negative cash flow effect amounting to SEK 9,534 (1,815) million. The acquisitions consist primarily of: Cradlepoint: On November 1, 2020, the Company acquired all of the shares in Cradlepoint Inc, a US-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions. The investment is key to Ericsson’s ongoing strategy of capturing market share in the rapidly expanding 5G Enterprise space. Cradlepoint complements Ericsson’s existing 5G Enterprise portfolio which includes Dedicated Networks and a global IoT platform. Goodwill in this transaction represents future customers, future technology and synergies to the sales channels and commercial model applied by Cradlepoint and is not expected to be deductible for tax purposes. The following table shows the provisional fair values at the acquisition date ​​of the assets acquired and liabilities assumed.
Cradlepoint |  |  |
|  | 2020 |
Total consideration – cash |  | 9,498 |
Net assets acquired |  |  |
Cash and cash equivalents |  | 297 |
Property, plant and equipment |  | 185 |
Intangible assets |  | 3,330 |
Other assets |  | 1,420 |
Other liabilities 1) |  | (2,797) |
Total identiﬁable net assets |  | 2,435 |
Goodwill |  | 7,063 |
Total |  | 9,498 |
1) | Includes deferred tax liabilities of SEK 1,205 million.
Genaker: On March 31, 2020 the Company acquired 100% of the shares in Genaker, a provider of Mission Critical Push-to-talk (MC-PTT) solutions, based in Barcelona, Spain. The acquisition strengthens Ericsson’s MC-PTT offering as the mission critical communications and private network market is going through a significant technology shift. Balances to facilitate the Purchase price allocation are final. Kathrein: The preliminary purchase price allocation of Kathrein made in 2019 was finalized during 2020 with the following effects: an increase in intangible assets of SEK 188 million, a decrease of other assets of SEK 119 million and an increase of assumed liabilities of SEK 69 million. In order to finalize a Purchase price allocation all relevant information needs to be in place. Examples of such information are final consideration and final opening balances, they may remain preliminary for a period of time due to for example adjustments of working capital, tax items or decisions from local authorities. Divestments
Divestments 2018–2020 |  |  |  |  |  |
|  | 2020 |  | 2019 |  | 2018
Proceeds 1) |  | 4 |  | 1,569 |  | 226
Net assets disposed of |  |  |  |  |  |
Property, plant and equipment |  | 1 |  | 171 |  | 55
Right-of-use assets |  | 1 |  | 20 |  | —
Investments in associates |  | — |  | 5 |  | 114
Intangible assets |  | 48 |  | 820 |  | 30
Goodwill |  | 4 |  | — |  | —
Other assets |  | 83 |  | 96 |  | 809
Provisions, incl. post-employment beneﬁts |  | (1) |  | 244 |  | (43)
Other liabilities |  | 6 |  | (774) |  | (571)
Total net assets |  | 142 |  | 582 |  | 394
Net gains/losses from divestments |  | (138) |  | 987 |  | (168)
Shares in associated companies 1) |  | — |  | (1,209) |  | —
Cash ﬂow effect |  | 4 |  | 360 |  | 226
1) | Proceeds for 2019 includes cash of SEK 320 million and shares in associated companies of SEK 1,209 million.
In 2020, the Company made divestments with a cash flow effect amounting to SEK 4 (360) million. Net gains/losses from the divestments are presented on Other operating income in the Income statement, see note B4 “Other operating income and expenses” for more information.
Acquisitions 2018–2020 |  |  |  |  |
Company |  | Description |  | Transaction date |
Cradlepoint |  | A US company providing Wireless WAN Edge 4G and 5G solutions for the enterprise market. |  | Nov 2020 |
Genaker |  | A Spanish provider of Mission Critical Push-to-talk (MC-PTT) solutions. |  | Mar 2020 |
ST-Ericsson |  | The remaining shares were acquired in ST-Ericsson (previously a joint venture). |  | Dec 2019 |
Kathrein |  | A German provider of antenna and filter technologies. |  | Oct 2019 |
CSF |  | A US based company related to the iconectiv business. |  | Aug 2019 |
CENX |  | A US based service assurance technology company. |  | Sep 2018 |
VidScale |  | A US company providing cloud-based Content Delivery Network (CDN) solutions. |  | Mar 2018 |
Placecast |  | A US company that leverages deterministic carrier data to deliver better audience, verification, and insight solutions. |  | Feb 2018 |
Divestments 2018–2020 |  |  |  |  |
Company |  | Description |  | Transaction date |
MediaKind |  | A divestment of 51% of its MediaKind business. |  | Feb 2019 |
Ericsson Local Services AB (LSS) |  | A divestment of the Local Services company in Sweden. |  | Aug 2018 |
Excellence Field Factory |  | A divestment of the Spanish fiber service operations. |  | Jun 2018 |

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