Search

Skanska plans to acquire Ericsson Real Estate & Services

Press release 12/17/1999 1:45 PM CET

Ericsson and Skanska today signed a Letter of Intent covering the acquisition by Skanska of the operations in Ericsson Real Estate & Services (REM). Ericsson intends to sign a long-term service agreement with Skanska. REM has sales of about SEK 1,700 million, with about 600 employees. All REM personnel will be taken over by Skanska.

PRESS RELEASE, DECEMBER 17, 1999           109/99

Skanska focuses on extended service offering;Plans to acquire Ericsson Real Estate & Services (REM)

Ericsson and Skanska today signed a Letter of Intent covering the acquisition by Skanska of the operations in Ericsson Real Estate & Services (REM). Ericsson intends to sign a long-term service agreement with Skanska. As a result, Skanska is intensifying its focus on facilities management and a broader range of services to customers.

For Ericsson, the transaction is part of the company’s focus on core operations and is part of its restructuring program.

REM has sales of about SEK 1,700 million, with about 600 employees. All REM personnel will be taken over by Skanska.

REM provides efficient workplaces through combining services, communications and security systems with traditional facilities management services. REM will be a part of Skanska’s Facilities Management Division, thereby enhancing its expertise.

The range of services provided by Facilities Management include handling the services needs not related to the customer’s core operations. This includes everything from building operations to responsibility for the infrastructure and security systems as well as personnel services, such as restaurants and exercise facilities. Contracts can also involve building maintenance and renovations.

Ericsson intends to sign a long-term service contract with Skanska. It is anticipated that the acquisition and service agreement can be signed in January 2000. At this time, the parties will disclose details about the financial terms.

"The acquisition is part of our strategy to broaden the range of services to our customers. Through working within the entire value chain, we can improve our service as well as possibilities to fully utilize our broad expertise," comments Per-Ingemar Persson, President of Skanska Sverige AB.

"As a result of this acquisition, we will become one of the leaders in Sweden in the market for facilities management. The new unit will form the core in an aggressive focus on continued expansion in service sector for companies and industry," says Per-Ingemar Persson.

Stockholm, December 17, 1999

SKANSKA SVERIGE AB

Information

----------------------------------------------------------------------------------------------------

For further information, contact:

Mats Jönsson, Divisional Manager, Skanska Sverige AB, Tel: +46 8 – 753 88 62, +46 70 – 322 88 99

Lars Östlund, Press Manager, Ericsson, Tel: +46 70-326 26 56