On September 17, 2020, the future of the Wireless WAN is forever changed. Ericsson announced its acquisition of Cradlepoint — creating a landmark partnership that will help accelerate 5G for Business and Wireless WAN within the enterprise.
Bringing Leaders Together
Ericsson is already a worldwide leader in 4G cellular infrastructure, and now the leader in 5G as well with 109 carrier agreements to date. Cradlepoint is a global leader in cloud-delivered wireless edge solutions for branch, mobile, and IoT networks, and the first in the world to deliver 5G for business.
From carrier core to enterprise edge, Ericsson and Cradlepoint have 5G covered.
Cradlepoint will remain an independent, standalone organisation with the same people and leaders, but will become Ericsson’s route to the enterprise. The partnership is set to deliver new and exciting 4G and 5G solutions that will continue to transform the enterprise WAN.
The Facts
- Ericsson (NASDAQ: ERIC) has agreed to acquire Cradlepoint, the US-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions, key to Ericsson’s ongoing strategy of capturing market share in the rapidly expanding 5G Enterprise space.
- 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 & New Businesses.
- Cradlepoint employees will remain within the company, headquartered in Boise, Idaho. It’s global offices and teams will continue to operate as they always have.
- The acquisition price amounts to an enterprise value of USD 1.1 b. with the transaction expected to close before the end of Q4 2020, subject to closing conditions.
- Ericsson’s long-standing collaboration with Cradlepoint dates back to the launch of 4G in the U.S. market more than a decade ago.
Börje Ekholm, President and CEO 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.”
George Mulhern, CEO and Chairman, Cradlepoint says:
“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.”
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Find out more by taking a look at the following resources available from the Cradlepoint website:
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