WORLD – Telecom company Ericsson has agreed to acquire Cradlepoint, the US-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions
The acquisition price amounts to an enterprise value of US$1.1bn with the transaction expected to close before the end of quarter 4 of 2020, subject to merger clearance and other closing conditions.
Cradlepoint complements Ericsson’s existing 5G Enterprise portfolio which includes Dedicated Networks and a global IoT platform.
The combined offering will create valuable new revenue streams for customers by supporting full 5G-enabled services for the enterprise, and boost returns on investments in the network.
Borje Ekholm, President and CEO, Ericsson
Cradlepoint will become a fully owned subsidiary of Ericsson while continuing to operate under its existing brand.
Cradlepoint employees will remain within the company, headquartered in Boise, Idaho and will be part of Ericsson’s Business Area Technologies & New Businesses.
Börje Ekholm, president and CEO Ericsson, said, “Portfolio-near acquisitions are an integral part of our earlier communicated strategy. The acquisition of Cradlepoint complements our existing offerings and is vital to our strategy of helping customers grow the value of their 5G network investments.
“Ericsson is uniquely positioned to build on Cradlepoint’s leadership position in Wireless Edge and the wireless WAN market. Combining the scale of our market access and established relationships with the world’s biggest mobile operators, we are making a strong investment to support our customers to grow in this exciting market. I want to extend a very warm welcome to all Cradlepoint employees, he emphasized.”