Ericsson To Acquire Cradlepoint In $1.1 Billion Deal
STOCKHOLM: 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.
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)
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