Ericsson announced on Monday it had agreed to the aquisition with the deal expected to close before the end of Q4 2020, subject to closing conditions.
Ericsson says the investment is key to its ongoing strategy of capturing market share in the rapidly expanding 5G Enterprise space, with Cradlepoint complementing its existing 5G Enterprise portfolio which includes Dedicated Networks and a global IoT platform.
Under the deal Cradlepoint will become a fully owned subsidiary of Ericsson while continuing to operate under its existing brand and Cradlepoint employees will remain within the company, headquartered in Boise, Idaho, and be part of Ericsson’s Business Area Technologies and New Businesses division.
The Swedish giant says 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.
Börje Ekholm, president and chief executive of Ericsson, says: "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.”
“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,” said George Mulhern, CEO and Chairman, Cradlepoint.
Founded in 2006, Cradlepoint has more than 650 employees, providing wireless WAN solutions that deliver enterprise-grade connectivity.
And in addition to the company headquarters in Idaho, the company operates a research and development centre in Silicon Valley, California, and new market offices in the United Kingdom and Australia.
Ericsson’s long-standing collaboration with Cradlepoint dates back to the launch of 4G in the US market more than a decade ago.