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Ericsson Acquires Cradlepoint to Increase Market Share in 5G Enterprise Space
Tuesday 22 September 2020

Sweden-based communications company Ericsson (NASDAQ: ERIC) has agreed to acquire Idaho-based provider of Wireless Edge WAN 4G and 5G enterprise solutions company Cradlepoint, to enhance new revenue streams in 5G for enterprise, the company said.

The acquisition price amounts to an enterprise value of USD 1.1bn with the transaction expected to close before the end of Q4 2020, subject to closing conditions.

The purchase price, which is funded from Ericsson's cash-in-hand, is paid in full on closing.

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.

Cradlepoint will become a fully owned subsidiary of Ericsson while continuing to operate under its existing brand. It will be part of Ericsson's Business Area Technologies and New Businesses.

Ericsson enables communications service providers to capture the full value of connectivity.

The company's portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help customers go digital, increase efficiency and find new revenue streams.
Date Published: 22/09/2020