NEW DELHI: Swedish telecom gear maker Ericsson has completed the transfer of its IoT Accelerator (IoT-A) and the Connected Vehicle Cloud (CVC) businesses and related assets to Aeris, and acquired a small, undisclosed stake in the latter.

“Today, Ericsson has closed the transfer of our IoT business to Aeris, creating a leader in the fragmented IoT market. The joint capabilities bring unprecedented scale, stability, reliability and security to launch and manage IoT programs around the world,” said Asa Tamsons, Head of Business Area Technologies & New Businesses at Ericsson in a statement.

Tamsons added that communications service provider partners and their customers on the IoT Accelerator will now be able to benefit from a “full-stack offering and new revenue streams”.

“The capabilities of the combined IoT (Internet of Things) businesses will serve thousands of customers across a wide range of industries – including healthcare, fleet, utilities and automotive – safely connecting tens of millions of IoT devices and providing intelligent solutions enabling IoT programs to scale and succeed, everywhere,” Ericsson said in a statement.

The Aeris Connected Vehicle business will help a growing list of automotive original equipment manufacturers (OEMs) to deploy, monetise and evolve their connected vehicle programs, the company added.

The transaction was announced on December 7 last year and was stated to close in the first quarter of 2023 (Q1 2023). The Ericsson IoT Accelerator is used by over 9,000 enterprises to manage more than 95 million connected devices with 22 million eSIM connections globally. On the other hand, its Connected Vehicle Cloud is being used by automotive IoT players to connect more than six million vehicles across 180 countries, the telecom gear maker had said.

“We look forward to integrating the Ericsson IoT and Connected Vehicle businesses to create the new Aeris. We have a long history of bringing innovation to the IoT space and now have additional talent, technology, and partnerships to bring that innovation to enterprises looking to simplify, secure and scale IoT around the world,” said Marc Jones, Chairman and CEO of Aeris.

“We look forward to working with Aeris and leveraging its extended IoT portfolio and industry offerings to bring value-added services to enterprise customers through our alliance members,” said Ong Geok Chwee, CEO of Bridge Alliance, one of Aeris’ new global partners.

Aeris will help enterprises effectively scale, while also solving common business challenges in IoT. According to Steffen Sorrell, Chief of Research at Kaleido Intelligence, “The marriage of Aeris and the former Ericsson businesses delivers a combination of global infrastructure engineered to meet specialized enterprise cellular IoT customer requirements and a wealth of expertise in understanding the challenges associated with scaling deployments across multiple international mobile networks.”