Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Wi-Fi or mobile? Tug-of-war over 6GHz intensifies

      25 June 2025

      War of words erupts over home affairs database fee hike

      24 June 2025

      Don’t expect Starlink in South Africa anytime soon

      24 June 2025

      Finally! Tribunal unpacks why it blocked Vodacom’s Vumatel deal

      24 June 2025

      Samsung to unveil new folding phones at July event

      24 June 2025
    • World

      Mira Murati’s Thinking Machines hits $10-billion valuation

      24 June 2025

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TechCentral Nexus S0E3: Behind Takealot’s revenue surge

      23 June 2025

      TCS | South Africa’s Sociable wants to make social media social again

      23 June 2025

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      South Africa risks being left behind as stablecoins reshape global finance

      6 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Ericsson to buy Cradlepoint in $1.1-billion 5G deal

    Ericsson to buy Cradlepoint in $1.1-billion 5G deal

    By Agency Staff18 September 2020
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Ericsson has agreed to buy US-based wireless networking company Cradlepoint in a US$1.1-billion deal, the Swedish telecommunications gear maker said on Friday, as part of plans to expand its 5G-related products for business customers.

    The deal, Ericsson’s largest in more than a decade, would give it access to tools that can connect devices using the so-called Internet of Things over a 4G or a 5G network.

    “We think this will give our customers a chance to generate new income sources within the enterprise segment,” Ericsson finance chief Carl Mellander said.

    Ericsson’s last big deal was in 2007, when it bought data network equipment vendor Redback Networks for $2.1-billion

    Ericsson plans to sell Cradlepoint products to its mobile operator customers, who can create new revenue streams by selling it to their business clients. Cradlepoint, which will become a subsidiary of Ericsson, sells routers and a subscription-based wireless networking service.

    A rival of Cisco, Cradlepoint had sales of $137-million in 2019, with a gross margin of 61%. “The acquisition is expensive, but the price tag is tolerable given high underlying growth rates and Ericsson’s potential for revenue expansion in the enterprise market,” said Societe Generale analyst Aleksander Peterc.

    Standalone

    While Cradlepoint has mostly focused on the US market, Ericsson aims to take the products outside North America and plans to keep it as a standalone business with its own sales team. “Where we have struggled in the past is when we have started to integrate on the sales side. That’s when you lose track of all your go-to-market channels and customer interactions,” said Ericsson CEO Borje Ekholm.

    Ericsson’s last big deal was in 2007, when it bought data network equipment vendor Redback Networks for $2.1-billion.

    The transaction, which is expected to close before the end of this year, will dent Ericsson’s operating margins by about 1% in 2021 and 2022. The company expects the takeover to start contributing to operating cash flow from 2022. Ericsson said its 2022 group financial targets remain unchanged.  — Reported by Helena Soderpalm and Supantha Mukherjee, (c) 2020 Reuters



    Borje Ekholm Carl Mellander Cradlepoint Ericsson
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSanral hit with legal action over cancelled e-tolls tender
    Next Article Government agrees to R10.5-billion SAA bailout: administrator

    Related Posts

    Samsung among suitors for Nokia’s networks business

    29 August 2024

    6G is coming – and it could change everything

    13 February 2024

    OpenRAN and the future of mobile networks

    18 January 2024
    Company News

    Africa’s power industry bolsters digitalisation with Huawei

    25 June 2025

    Communication costs exploding? Telviva has a fix for UK-SA teams

    24 June 2025

    Section 18A deductions and BEE points – a strategic choice for business compliance in 2025

    24 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.