Ericsson announced the acquisition of Cradlepoint, the US-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions. The acquisition is a part of Ericsson’s ongoing strategy of capturing market share in the rapidly expanding 5G Enterprise space. Cradlepoint will complement Ericsson’s existing 5G Enterprise portfolio. The combined offering will support full 5G-enabled services for the enterprise.
The transaction is expected to close before the end of Q4 2020 and the acquisition price amounts to an enterprise value of $1.1 billion. As a result of the acquisition, Cradlepoint will become a fully owned subsidiary of Ericsson and it will continue operating under its existing brand while its employees will remain within the company, headquartered in Boise, Idaho. The company will be a part of Ericsson’s Business Area Technologies & New Businesses. Börje Ekholm, President and CEO Ericsson said,
“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. 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. I would like to extend a very warm welcome to all Cradlepoint employees.”