Ericsson acquires enterprise 5G WAN edge firm Cradlepoint
The company offers wireless wide area network (WAN) edge solutions in both the 4G and 5G space to give companies flexible connectivity that remains fast and secure. Use cases include both fixed and temporary sites such as in vehicles used by emergency services.
Ericsson gave its rationale for the purchase as following its strategy to create a comprehensive 5G offering for enterprise customers, with Ericsson already offering dedicated 5G networks and a “global IoT platform”.
In , Börje Ekholm, President and CEO Ericsson, said: "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.”
Cradlepoint is to become a subsidiary of Ericsson, while continuing to operate with its current name and location. The deal, which is worth $1.1bn, is expected to complete in Q4 2020, pursuant to the usual terms and conditions.
George Mulhern, CEO and Chairman, Cradlepoint said: “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.”