OLD Media News

Ericsson to buy Cradlepoint for $1.1 bln

Swedish Ericsson will buy U.S. wireless networking services provider CradlePoint for $1.1 billion to advance its 5G capabilities.

Helena Soderpalm and Supantha Mukherjee reported the news for Reuters:

Ericsson ERICb.ST has agreed to buy U.S.-based wireless networking company Cradlepoint in a $1.1 billion deal, the Swedish telecoms gear maker said on Friday.

The deal, Ericsson’s largest in more than a decade, would give it access to tools that can connect devices using the so-called Internet of Things over a 4G or a 5G network.

“We think this will give our customers a chance to generate new income sources within the enterprise segment,” Ericsson finance chief Carl Mellander told Reuters.

Bloomberg’s Charles Daly wrote:

Ericsson, Nokia Oyj of Finland and China’s Huawei Technologies Co. are locked in intense competition to supply 5G technology that’s increasingly been caught up in a global political battle. Borje Ekholm, the chief executive of Ericsson, has repeatedly said that takeovers are “an integral part” of its 5G 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,” Ekholm said in Friday’s statement.

Irina Slav

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