Cradlepoint

History

2020: Ericsson purchased Cradlepoint for $1.1 billion

On September 18, 2020 it became known of what the Ericsson company purchased the developer of wireless solutions Cradlepoint who specializes in 4G networks and a 5G. The transaction is estimated at $1.1 billion.

The largest transaction of Ericsson for the last decade will provide to the company access to tools using which it will be possible to implement support by the user devices of technology of Internet of Things and 4G networks or a 5G.

In a conversation with Reuters the chief financial officer of Ericsson Karl Mellander noted:

We consider that it will give to our clients the chance to receive new sources of income in a corporate segment.

Ericsson purchased for $1.1 billion the developer of wireless solutions of Cradlepoint to sell more 5G equipment

Ericsson is going to sell the products Cradlepoint to the clients mobile operators who will be able to create new revenue streams, selling them to the business clients.

In the press release it is said:

Ericsson came to the purchase agreement Cradlepoint, the American leader in the market of solutions … for 4G and 5G. These investments are a key to the current strategy of Ericsson on gaining a market share in quickly extending Enterprise 5G space.

The analyst of Societe Generale Alexander Peterk noted:

The transaction is estimated expensively, but the price is quite admissible, considering high growth rates and capacity of Ericsson for increase in income in business market.

While Cradlepoint is generally focused on the market of the USA, Ericsson aims to display products out of borders of North America and is going to save independence of business, having own sales department.

Closing of the transaction is expected during the fourth quarter 2020 at observance of the conditions stipulated by the companies. Cradlepoint will become completely Ericsson subsidiary company, continuing to work under the existing brand.^[1]

Notes