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Ericsson ties up $1bn acquisition of wireless network company Cradlepoint

Written by Tue 3 Nov 2020

Swedish network technology giant announced its intention to buy Cradlepoint in September

Ericsson has completed its $1bn acquisition of wireless network company Cradlepoint in an all-cash deal.

The Swedish networking and telecommunications technology powerhouse announced its intent to purchase US-based Cradlepoint, which primarily sells 3G/4G/LTE routers and modems to service providers and enterprises needing private networks, in September.

Ericsson said the acquisition forms part of its strategy to capture a greater market share in the 5G enterprise segment. The company mainly sells equipment to network providers.

KPMG estimates 5G will unlock £3.35 trillion of value for enterprises over the next six years across government, finance, healthcare, manufacturing, consumer goods/retail, and technology/media/telecom industries.

“I am very excited to welcome Cradlepoint to the Ericsson family. With Cradlepoint’s market-leading solutions, we are strengthening our enterprise offering and taking an important step to lead the next wave of enterprise network transformation,” said Åsa Tamsons, Senior Vice President and Head of Business Area Technologies & New Businesses, Ericsson.

“Together, we will power solutions to the customer edge that help improve productivity and deliver real-time services, enabling us to drive faster adoption of 5G in enterprise segments. This is good news for our customers as it helps them to accelerate their returns on 5G investments.”

Cradlepoint and its 700 employees will continue to operate as a standalone subsidiary within Ericsson from its headquarters in Idaho, US. The company also operates a research and development centre in Silicon Valley, California, and has offices in the United Kingdom and Australia. According to 451 Research, the company boasts over 20,000 customers.

Last week, Ericsson signed a deal with BT to supply equipment for its 5G network in major cities across the UK, as the telecommunications company joins other industry giants easing dependence on beleaguered Chinese tech company Huawei.

Written by Tue 3 Nov 2020

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