Ericsson has taken over Cradlepoint, the WAN vendor for US$1.1 billion.
Cradlepoint had partnered up with Telstra a year ago in order to co-develop a 5G offering for SMB and enterprise customers based on its NetCloud platform. This platform will let customers of Telstra build and manage wireless WANs which includes lifecycle management, edge security and SD-WAN traffic management.
At the same time, Tech Data had also been appointed as its local distributor.
The networking and telecommunications giant said that the takeover was important for its current strategy of seizing market share in the 5G enterprise space and that the US-based company perfectly accompanies its already existing 5G enterprise portfolio. This partnership between the two companies goes as far back as the release of 4G in the US.
Cradlepoint will be a completely-owned Ericsson subsidiary and will also be a part of its Business Area Technologies and New Businesses division, but at the same time, it will continue to operate under the same brand and will still have the same employees.
“Portfolio-near acquisitions are an integral part of our earlier communicated 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,” Börje Ekholm, Ericsson president and chief executive said.
“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.”
“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, Cradepoint’s chairman and CEO said.
“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.”
The translation can be expected to close prior to the end of Q4 2020, Ericsson said.