Ericsson has agreed to acquire Cradlepoint, a maker of wireless edge WAN 4G and 5G enterprise solutions, for $1.1 billion to expand its 5G enterprise portfolio.
The company said the new combination will create new revenue streams by supporting full 5G services for enterprise as well as global internet of things (IoT) services.
Under the agreement, Cradlepoint will become a fully owned subsidiary of Ericsson while operating under its existing brand and the company’s headquarters will continue to be in Boise, Idaho. The transaction is expected to close in the fourth quarter of this year, subject to closing conditions.
Wireless wide area network (wireless WAN) connects through 4G and 5G for fast, secure and flexible connectivity for businesses, mobility and frontline emergency services.
Ericsson has previously collaborated with Cradlepoint on the original launch of 4G services in the U.S. market about a decade ago. Cradlepoint offers a subscription model combining cloud-delivered software with hardware endpoints as well as support and training.