Ericsson To Buy Wireless Networking Firm Cradlepoint In $1.1 Billion Deal

The transaction, expected to close before the end of this year, will hurt Ericsson’s operating margins by about 1% in 2021 and 2022, and contribute to operating cash flow starting in 2022.

Ericsson said its 2022 group financial targets remained unchanged.

Cradlepoint, which will become a subsidiary of Ericsson, was founded in 2006, has more than 650 employees, and provides subscription-based wireless networking software and hardware to businesses.

It had sales of 1.2 billion crowns ($137 million) in 2019, with a gross margin of 61%.