Home5G & BeyondEricsson buys Cradlepoint for $1.1 billion

Ericsson buys Cradlepoint for $1.1 billion

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Ericsson has announced the acquisition of Cradlepoint, a US-based company specialising in wireless edge wide area network (WAN) 4G and 5G enterprise solutions, for $1.1 billion.

The Swedish vendor said the investment is key to its ongoing push in the 5G enterprise space and that Cradlepoint complements its existing portfolio, which includes dedicated networks and a global Internet of Things (IoT) platform.

โ€œThe combined offering will create valuable new revenue streams for customers by supporting full 5G-enabled services for enterprise, and boost returns on investments in the network,โ€ an Ericsson statement said.

Cradlepoint will become a wholly owned subsidiary of Ericsson, while continuing to operate under its existing brand. It will be part of Ericssonโ€™s Business Area Technologies & New Businesses. Cradlepoint employees will remain within the company, headquartered in Boise, Idaho. 

Strategic move

Bรถrje Ekholm, President and CEO, Ericsson, said: โ€œEricsson is uniquely positioned to build on Cradlepointโ€™s leadership position in wireless edge and the wireless WAN market. Combining the scale of our market access and established relationships with the worldโ€™s biggest mobile operators, we are making a strong investment to support our customers to grow in this exciting market.โ€

Founded in 2006, Cradlepoint has more than 650 employees. In addition to the company headquarters in Boise, Idaho, the company operates a research and development centre in Silicon Valley, California, and has market offices in the United Kingdom and Australia.

George Mulhern, CEO and Chairman, Cradlepoint, commented: โ€œWe have led the way in bringing the power of cellular networks and technologies to enterprise and public sector customers โ€“ helping them connect beyond the limits of traditional wired WANs. Ericsson with its global 5G leadership is a great match for us and I am very excited to continue to scale and expand our business together.โ€

The transaction is expected to close before the end of Q4 2020, subject to conditions.