Ericsson has agreed to acquire Cradlepoint, the US-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions.
In capturing a greater market share, the investment is key to Ericsson’s ongoing strategy in the rapidly expanding 5G Enterprise space.
Cradlepoint is said to complement Ericsson’s 5G Enterprise portfolio which includes Dedicated Networks and a global IoT platform.
It will become a fully owned subsidiary of Ericsson while continuing to operate under its existing brand.
The combined offering will create valuable revenue streams for customers by supporting full 5G-enabled services for the enterprise and boost returns on investments in the network, Ericsson relayed.
.@ericsson acquires @cradlepoint for $1.1B to expand into #4G/#5G wireless #enterprise edge infrastructure. Cradlepoint will become a fully owned subsidiary of Ericsson while continuing to operate under its existing brand. pic.twitter.com/UU8qKcYgvx— Dan Mandell (@DanMandell) September 22, 2020
According to the official statement from Ericsson, employees in Cradlepoint will remain within the company headquartered in Boise, Idaho.
Cradlepoint is expected to contribute to operating cash-flow starting in 2022. However, Ericsson’s 2022 group financial targets remain unchanged.
President and CEO of Ericsson, Börje Ekholm stated that Ericsson is positioned to build on the leadership position of Cradlepoint in Wireless Edge and the wireless WAN market.
“Portfolio-near acquisitions are an integral part of our earlier communicated strategy.
“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.
“Combining the scale of our market access and established relationships, we are making a strong investment to support our customers to grow in this exciting market”.
CEO and Chairman of Cradlepoint, George Mulhern said he was excited to continue to scale and expand our business together.”
The long-standing collaboration between Ericsson and Cradlepoint dates back to the launch of 4G in the U.S. market more than a decade ago.