Ericsson has agreed to acquire US-based Cradlepoint, provider of wireless edge WAN 4G and 5G enterprise solutions, for US$1.1 billion.
The investment complements Ericsson’s 5G enterpirse portolio and is aligned with its strategy of gaining a foothold in this space.
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.
“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,” said Börje Ekholm, President and CEO of Ericsson.
Cradlepoint will keep its existing brand and its employees will remain within the company as part of Ericsson’s Business Area Technologies & New Businesses.
“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,” George Mulhern, CEO and Chairman of Cradlepoint.
The transaction is expected to close before the end of 2020, subject to closing conditions.