August 7, 2020

1081 words 6 mins read

Ericsson closes $11bn Cradlepoint acquisition

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 Ă…sa 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

Channel should brace for tightened end user spending, analyst says (2020-11-05) Forrester says partners should buckle up for a year where frustrations will build among end users and says automation will be a key trend to help End user customers will have to learn to do more with less next year as COVID-19 weighs heavy on their IT budgets Forrester VP and principal analyst Thomas Husson claims that end users will want to invest in technology next year to help them endure the C..
Rupert Mills (2020-11-16) What has been your personal highlight of 2020? Keeping Krome pushing forwards and hitting growth year on year has always been a target and achieving that again this year even with the pandemic has been a great achievement for all of our team On a personal level achieving a better work/life balance with enforced working from home has also been a highlight Which three celebrities would you invite to..
Cisco’s UK boss on virtual working, Brexit and where UK tech is a world leader (2020-11-20) David Meads was appointed Cisco UK chief exec in February this year Ciscos UK chief exec David Meads has praised the UK channel for its innovation during the pandemic claiming the UK tech sector is the world leader in many areas Speaking toCRN Meads disagreed with the sentiment that the UK and European tech markets follow the lead of the US He highlighted the fast work carried out by Cisco and its..
Redcentric bins potential sale as revenues thrive (2020-11-12) MSP plans to invest in resources to win new business after the conclusion of lengthy FCA investigation AIM-listed Redcentric has canned its plans to sell due to a lack of fully funded offers The MSP launched a formal sale process in early September after its fiscal 2020 put it in a good spot to increase its value to its shareholders However despite talks with a number of parties - which included K..
Ian Turnbull (2020-11-16) What has been your personal highlight of 2020? A lowlight would have to include rupturing my Achilles in the middle of January - welcome to your 40s Mr Turnbull - but my absence from the office good practice pre-COVID has not hindered progress The highlights for me would be receiving our third nomination in a row for a CRN Award which is a great honour We were also approached to deliver a number o..
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 ..
FireEye shells out $186m on security automation firm (2020-11-20) Cybersecurity vendor acquires Respond Software as it receives $400m strategic investment FireEye has acquired cybersecurity automation specialist Respond Software for $186m Respond is billed as a cybersecurity investigation automation company and received $20m in Series B funding last year The acquisition of Respond brings new market opportunities for FireEye to deliver its detection and response ..
Alex Tatham (2020-11-16) What has been your personal highlight of 2020? Westcoasts performance and resilience Amazing growth when the rest of the channel has gone backwards Tough times tough decisions but we have a great team - particularly our warehouse staff who have kept the channel going throughout Which three celebrities would you invite to a Zoom party? Three of Fat Larrys Band! What has been your guiltiest lockdown..
Cambium Networks: We are heavily recruiting new partners (2020-11-25) Wireless connectivity vendor is increasing its channel presence as it enters its next phase of growth Read all about how to get involved in this Q&A with Cambiums regional sales manager Dan McCarthy pictured Tell us about your ConnectedPartner program? The ConnectedPartner program is designed to help partners succeed with Cambium Networks wireless connectivity solutions The ConnectedPartner progra.. Cambium Networks: We are heavily recruiting new partners
Ben Boswell (2020-11-16) What has been your personal highlight of 2020? Working with the team to launch DOPS Digital We have had to be courageous and work incredibly hard as a team Together we have worked through the most challenging and turbulent market conditions to set the foundation for an incredible 2021 I have also loved working with my Princes Trust mentees and Jake Armstrong at Addey and Stanhope School as we try .. Ben Boswell