Bengaluru, Sep 21 (IANS): Swedish telecommunication giant Ericsson has acquired Cradlepoint, the US-based market leader in Wireless Edge WAN 4G and 5G Enterprise solutions, for $1.1 billion.
The combined offering will create valuable new revenue streams for customers by supporting full 5G-enabled services for enterprise, and boost returns on investments in the network.
The investment is key to Ericsson's ongoing strategy of capturing market share in the rapidly expanding 5G Enterprise space, the company said in a statement.
"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. Ericsson is uniquely positioned to build on Cradlepoint's leadership position in Wireless Edge and the wireless WAN market," said Borje Ekholm, President and CEO Ericsson.
The transaction is expected to close before the end of Q4 2020, subject to closing conditions.
Wireless wide area network (wireless WAN) Edge solutions connect through 4G and 5G to deliver fast, secure, and flexible connectivity wherever and whenever it is needed for businesses, mobility and critical frontline emergency services.
Cradlepoint is strongly positioned in a market with underlying growth of 25-30 per cent.
"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," said George Mulhern, CEO and Chairman, Cradlepoint.
Founded in 2006, Cradlepoint has more than 650 employees, providing wireless WAN solutions that deliver enterprise-grade connectivity.
In addition to the company headquarters in Boise, Idaho, the company operates a research and development center in Silicon Valley, California, and new market offices in the United Kingdom and Australia.
With the acquisition, Cradlepoint will become a fully-owned subsidiary of Ericsson while continuing to operate under its existing brand.