LM Ericsson Telefon AB has cut its holding in Swedish software company AU-Systems from 41% to 25% in order to give the company more freedom to work with multiple telecommunications equipment suppliers. Stockholm-based AU-Systems, which had revenues of $54m last year and has been growing at a rate of 40%-50% a year, is a major supplier of software for SIM cards and internet security software for e-commerce.
Schroder Ventures Ltd, the international investment group, has bought the Ericsson shares for an undisclosed amount and an IPO appears likely in the near future. AU was founded in 1974 and Ericsson bought its stake in 1997. With its backing, AU was able to build up its international operations and now has 430 staff and installations in 40 countries. Ericsson says that a strategic stake of 25% is adequate to capitalize on AU’s future growth.
