Ericsson to acquire Cradlepoint in $1.1 bln deal

Credit: REUTERS/ALY SONG

Telecoms gear maker Ericsson said on Friday it would acquire Cradlepoint, a provider of wireless WAN solutions, in a deal worth $1.1 billion on an enterprise-value basis.

STOCKHOLM, Sept 18 (Reuters) - Telecoms gear maker Ericsson ERICb.ST said on Friday it would acquire Cradlepoint, a provider of wireless WAN solutions, in a deal worth $1.1 billion on an enterprise-value basis.

The Swedish firm said operating margins would be negatively affected by about 1% in 2021 and 2022, with half of it related to amortization of intangible assets.

Idaho, U.S.-based Cradlepoint had sales of 1.2 billion crowns ($137 million) in 2019, with a gross margin of 61%.

Ericsson said its 2022 group financial targets remained unchanged.

($1 = 8.7732 Swedish crowns)

(Reporting by Helena Soderpalm, Editing by Sherry Jacob-Phillips)

((helena.soderpalm@thomsonreuters.com; +46 8 700 10 15; Reuters Messaging: helena.soderpalm.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More