Ericsson, a Stockholm, Sweden-based provider of communications services, has agreed to acquire Cradlepoint, a provider of wireless Edge WAN 4G and 5G enterprise solutions, according to a press release. Cradlepoint complements Ericsson's existing 5G Enterprise portfolio, which includes dedicated networks and a global IoT platform.

The combined offering will support full 5G-enabled services for enterprise, and boost returns on investments in the network.

Cradlepoint will become a fully owned subsidiary of Ericsson while continuing to operate under its existing brand. Cradlepoint employees will remain within the company, headquartered in Boise, Idaho, as part of Ericsson's business area technologies and new businesses.

The acquisition price amounts to an enterprise value of $1.1 billion with the transaction expected to close before the end of Q4 2020, subject to closing conditions. The purchase price, which is funded from Ericsson's cash-in-hand, is paid in full on closing.

"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," George Mulhern, Cradlepoint CEO and chairman, said in the press release. "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."

Image courtesy of Cradlepoint.

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