- General
- September 18, 2020
- 4 minutes read
Ericsson Snaps Up Cradlepoint
Börje Ekholm, President and Chief Executive Officer, Ericsson. Photo credit: World Economic Forum/Sandra Blaser, under Creative Commons license Swedish…
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| Börje Ekholm, President and Chief Executive Officer, Ericsson.
Photo credit: World Economic Forum/Sandra Blaser, under Creative Commons license
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Swedish telecoms giant Ericsson has reached a deal to acquire Cradlepoint, a US-based maker of wireless networking products, in a $1.1 billion deal that’s expected to close before the end of this year. Following the completion of the acquisition, Cradlepoint will become a fully owned subsidiary of Ericsson while maintaining its brand and headquarters in the US state of Idaho. Cradlepoint will now be grouped under Ericsson’s ‘Business Area Technologies & New Businesses’ division.
Ericsson touts Cradlepoint’s acquisition as a major play for its foray into the nascent 5G market. The Swedish telecoms outfit is apparently looking to capture significant market share in the 5G market and has seen Cradlepoint as a catalyst towards its goal. Before now, Ericsson had been a partner to Cradlepoint, with an association tracing back to the launch of the 4G cellular network technology over a decade ago. Now in the realm of 5G, Ericsson will not just be a partner but will be leading the way by taking outright ownership of the entire company.
“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.” George Mulhern, Cradlepoint’s CEO and Chairman, said in a press statement.
“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.” Ericsson’s chief executive, Börje Ekholm, added in a press statement.
Cradlepoint, a privately-held company, was founded in 2006. As a private company, it’s raised over $160 million in funding from investors including notable names like TCV, Highway 12 Ventures, and Sorenson Capital. Cradlepoint currently employs over 650 people across the US, UK, and Australia.
