Business Standard

Ericsson to buy wireless networking firm Cradlepoint in $1.1 billion deal

Ericsson 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.

Photo: Reuters

Photo: Reuters

Reuters STOCKHOLM
STOCKHOLM (Reuters) - Ericsson 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 Internet of Things over a 4G or a 5G network.
The transaction, expected to close before the end of this year, will hurt Ericsson's operating margins by about 1% in 2021 and 2022, and contribute to operating cash flow starting in 2022.
Ericsson said its 2022 group financial targets remained unchanged.
Cradlepoint, which will become a subsidiary of Ericsson, was founded in 2006, has more than 650 employees, and provides subscription-based wireless networking software and hardware to businesses.
It had sales of 1.2 billion crowns ($137 million) in 2019, with a gross margin of 61%.
 
(Reporting by Helena Soderpalm and Supantha Mukherjee, Editing by Sherry Jacob-Phillips and Tomasz Janowski)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Topics : Ericsson

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First Published: Sep 18 2020 | 12:51 PM IST

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