Ericsson to acquire Cradlepoint in $1.1 billion deal

The Ericsson logo is seen at the Ericsson’s headquarters in Stockholm, Sweden June 14, 2018. Picture taken June 14, 2018. REUTERS/Olof Swahnberg

STOCKHOLM (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.

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