Ericsson Microelectronics AB, a unit of Swedish telecommunications equipment vendor L.M. Ericsson Telephone, announced Tuesday that it is selling off its European component distribution business to U.K.-based Eurodis Electron PLC in a cash deal valued at $US43 million.
As part of Ericsson's strategy of focusing on its core businesses, the Microelectronics unit said in a statement it aims to concentrate on developing and supplying microelectronics components for mobile Internet and broadband communications.
The distribution unit, Ericsson Microelectronics Europe AB, had 1999 sales of 1.1 billion krona ($US113 million), Ericsson said. The company is a distributor for products from component makers including Hitachi Ltd., International Rectifier Corp., Kemet Corp. and Toshiba Corp.
Based in Reigate, England, Eurodis is one of Europe's largest distributors of electronic components. For the fiscal year ending May 31, 2000, Eurodis reported sales of 310 million pounds ($US434 million), up from 272 million pounds for the previous year.