Before the end of the year, Ericsson is poised to acquire Cradlepoint, a U.S.-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions, for $1.1 billion. According to a press release, Cradlepoint will become a wholly-owned subsidiary of Ericsson while operating under its existing brand in Boise, Idaho.
“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,” said Börje Ekholm, President and CEO of Ericsson in the release. “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.”
Ericsson and Cradlepoint’s partnership goes back more than a decade, and the acquisition will be a part of Ericsson’s Business Area Technologies & New Businesses. Cradlepoint’s 650 staff members will remain on board. “I would like to extend a very warm welcome to all Cradlepoint employees,” added Ekholm.
Founded in 2006, Cradlepoint’s subscription model combines cloud-delivered software with hardware endpoints, support, and training. Cradlepoint CEO and Chairman, George Mulhern, 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.”