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.
"The 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," 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 Ericsson's Business Area Technologies & New Businesses. Cradlepoint employees will remain within the company, headquartered in Boise, Idaho.
Börje Ekholm, President and CEO, Ericsson, said: "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."
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: "We have led the way in bringing the power of cellular networks and technologies to enterprise and public sector customers – 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."
The transaction is expected to close before the end of Q4 2020, subject to conditions.