Ericsson closes $11bn Cradlepoint acquisition
Telco giant claims acquisition will help it grab market share in 5G enterprise space
Ericsson has closed its acquisition of wireless edge vendor Cradlepoint as it looks to grab market share in the 5G enterprise space.
The $1.1bn all-cash acquisition was first announced in September and would see US-based Cradlepoint be acquired by the Swedish telco firm. At the time Ericsson said the
deal would close before the end of the year. Cradlepoint produced revenues of SEK 1.2bn in 2019, claims Ericsson, and achieved gross margins of 61 per cent. Ericsson claims that its own operating margins will be negatively affected by one per cent due to the acquisition, but expects Cradlepoint to contribute to its cash flow by 2022. The Swedish telco claims the acquisition will enable it to create new revenue streams for its enterprise customers through supporting 5G services. Meawhile, Ericsson claims its international footprint will help speed up Cradlepoint’s own expansion into new territories. The US vendor will continue to operate as a standalone subsidiary as part of Ericsson, forming part of its Business Area Technologies and New Business unit. It will keep its headquarters in Boise, Idaho as well as its RA centre in Silicon Valley and international offices in the UK and Australia. In a statement Åsa Tamsons, SVP of Business Area Technologies and New Business at Ericsson, said: “I am very excited to welcome Cradlepoint to the Ericsson family. With Cradlepoint’s market leading solutions, we are strengthening our enterprise offering and taking an important step to lead the next wave of enterprise network transformation. Together, we will power solutions to the customer edge that help improve productivity and deliver real-time services, enabling us to drive faster adoption of 5G in enterprise segments. This is good news for our customers as it helps them to accelerate their returns on 5G investments.”
Author: josh.budd@incisivemedia.com(Josh Budd)
Date: 2020-11-02
URL: https://www.channelweb.co.uk/news/4022631/ericsson-closes-usd-1bn-cradlepoint-acquisition
channelweb.co.uk
| How the channel kept the UK moving in 2020 (2020-11-13) | At last nights Channel Awards we took a quick look back at how distributors resellers and MSPs have proved their worth this year The channel has displayed its true colours in 2020 IT distributors resellers and managed services providers have kept essential goods flowing worked out of hours to install and support infrastructure and devices in ICUs hospitals and care homes supported frontline worker.. |
| Pip White (2020-11-16) | What has been your personal highlight of 2020? For the past 20 years I have spent a lot of time travelling around the world and being away from home a lot So my personal highlight this year has been spending some quality time with my family and friends at home in Cheshire Which three celebrities would you invite to a Zoom party? Barack Obama - it goes without saying he is a legend Jacinda Ardern -.. |
| Jay McBain (2020-11-16) | What has been your personal highlight of 2020? 2020 has been a year like no other I was proud of the entire channel - from partners to vendors and distributors - how they rose to the occasion in March to help customers build a new remote topology from scratch From hardware to software and the multitude of services to make it all work combining very late nights and early mornings to deliver uninter.. |
| ‘My eyes lit up’ - Salesforce CEO on the moment Slack acquisition was suggested (2020-12-02) | Marc Benioff reveals that Salesforce COO and Slack founder orchestrated the merger Salesforce is set to acquire Slack in one of the biggest software mergers ever The deal which has been approved by the boards of both companies but is subject to approval from Slack shareholders is valued at $277bn Salesforce CEO Marc Benioff revealed that the acquisition has been masterminded by COO Bret Taylor and.. |
| Datto touts its ‘reacceleration’ following revenue rise (2020-11-24) | MSP Vendor posts first quarterly figures since going public last month Datto CEO Tim Weller says the companys Q3 figures marks a reacceleration of our business after starting its financial year with a round of redundancies Total revenues for the MSP vendor were up 11 per cent to $1377m year on year Subscription revenues made up the lions share of that bringing in $1228m which was a 17 per cent ris.. |
| 12 Buy IT Direct (2020-12-02) | This Huddersfield-based e-tailer recently enlisted former Mothercare COO Keith Basnett to help it scale revenue to 500m Counting Laptops Direct and Servers Direct among its brands it also sells furniture and bathrooms Revenue for its year to 31 March 2020 vaulted by almost a fifth to hit 2955m with net profits swelling from 61m to 65m Buy IT has opted to gamble on the COVID-induced shift to online.. |
| Richard Blanford (2020-11-16) | What has been your personal highlight of 2020? The best thing is that Fordways business has continued to thrive throughout the COVID crisis One of our company values is adapt and thrive Having survived the 2008-10 financial crisis but taken a few body blows we learned that we needed to rebuild our business on contractually recurring revenue from Fordway delivered services which we have done in the.. |
| Acquisitive unified comms VAR Babble undergoes MBO (2020-11-11) | Unified comms VAR Babble has been acquired through a management buyout which valued it at 90m This deal sees private equity investor LDC bought out although the firm will retain a minority stake Babble CEO Matt Parker said: The last three years have been transformational for Babble and we are well on our way to becoming a 100m revenue business Were pleased LDC is staying with us on the next stage .. |
| BT hands Ericsson major 5G contract as Huawei snub continues (2020-10-28) | Nordic vendor will help manage 50 per cent of 5G traffic going through BT and its EE provider Ericsson has won a huge contract to provide technology for BTs 5G networks in major cities across the UK The Swedish firm said it would eventually manage 50 per cent of traffic across BTs network as well as across its EE brand @Ericsson has been selected as BTs #5G partner for London and major UK cities T.. BT hands Ericsson major 5G contract as Huawei snub continues |
| Paul Bryan (2020-11-16) | What has been your personal highlight of 2020? Having dinner with the family every day throughout the lockdown I have two teenage children and getting to know them better by sitting down to dinner every day which I never normally do has been illuminating on so many levels Teenagers in todays world face so many more challenges and pressures that I didnt have to face at their ages and it has been ju.. |
