In order to enable a future 5G mobile radio network, one needs antennas to send signals. Although Ericsson can make a lot of things, the construction of antennas or the development of them has not been part of it yet. However, this will change as the Swedish tech company takes over the antenna and filter department of the German manufacturer Kathrein.
Since 1919, the renowned German company has been active as a manufacturer of antennas and satellite technology and is known in this industry for its quality. It is no surprise that Ericsson has its eyes on Kathrein, especially since the Swedes are their biggest customer. „With the additional focus on the antenna and filter business led by Kathrein professionals, we will broaden our offering to further optimize site space, which is vital for the introduction of 5G”, says Fredrik Jejdling, Executive Vice President of Ericsson.
Division with 4.000 employees
If the regulatory authorities give their approval, the Products division with around 4,000 employees at more than 20 locations will be integrated into the Ericsson Business Area Networks in the third quarter of this year, according to Kathrein. But this division does not only offer skilled employees. The Products division reports generating sales of around 270 million euros in the past year – excluding deliveries to Ericsson.
Over the past few months, the German manufacturer has experienced difficulties and has already attracted attention with the sale of its car roof antenna division to the automotive supplier Continental. Anton Kathrein, CEO of the Kathrein Group, explained: “In view of the strategic options and the further increase in global competition in the mobile communications sector, we want to secure the future viability and competitiveness of this significant business by selling our Products division to our long-term technology partner Ericsson.”
We will see how Ericsson will evolve in the 5G race over the coming months. The selling price of the acquisition will not be disclosed.