Ericsson to acquire Cradlepoint for US$1.1bn in 5G drive
The acquisition will be central to Ericsson’s ongoing strategy of capturing market share in the ever-increasing 5G Enterprise space. Cradlepoint is a US-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions. Cradlepoint complements Ericsson’s existing 5G Enterprise portfolio, which already involves Dedicated Networks and a global IoT platform.
The combination of the two organisations will mean new revenue streams for customers by supporting full 5G-enabled services for enterprise, and increase returns on investments in the network.
The deal will see Cradlepoint become a fully owned subsidiary of Ericsson, while continuing to operate under its existing brand. It will also see Cradlepoint’s employees remain within the company and the firm will become part of Ericsson’s Business Area Technologies and New Businesses.
Börje Ekholm, President and CEO Ericsson, commented: “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.”
George Mulhern, CEO and Chairman, Cradlepoint added: “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.”