Swedish telecom equipment maker Ericsson has announced it will acquire U.S. based Cradlepoint which sells routers and a subscription-based wireless networking service to businesses.
The deal gives Ericsson access to Cradlepoint’s tools which allows devices to connect using the Internet of Things over a 4G or a 5G network. At $1.1 billion, the deal is Ericsson’s largest since before the financial crisis.
The deal will result in very slight pressure on operating margins, begin making positive contributions to operating cash flow in 2022, and close in the fourth quarter of 2020.