Ericsson agrees to acquire Cradlepoint in a deal worth $1.1 Billion
On Friday, Ericsson (ERICb.ST) announced that it has agreed to buy CradlePoint Inc. in an acquisition deal worth $1.1 Billion.
The Swedish multinational networking and telecommunications company said that the deal would create valuable new revenue streams for its customers by supporting full 5G-enabled services.
“The investment is key to Ericsson’s ongoing strategy of capturing market share in the rapidly expanding 5G Enterprise space. CradlePoint complements Ericsson’s existing 5G Enterprise portfolio, which includes Dedicated Networks and a global IoT platform,” Ericsson said in a statement.
CradlePoint would become a fully owned subsidiary of Ericsson. However, the U.S.-based wireless networking company would continue to operate under its existing brand. Its employees would be part of Ericsson’s Business Area Technologies & New Businesses located in Boise, Idaho.
“The acquisition of CradlePoint complements our existing offerings and is key to our strategy of helping customers grow the value of their 5G network investments,” Ericsson’s Chief Executive Officer Borje Ekholm stated.
In 2019, CradlePoint’s sales reached 1.2 Billion Crowns ($137 Million) with a gross margin of 61%.