Ericsson to acquire Cradlepoint in $1.1 billion deal

STOCKHOLM (Reuters) – 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.

(Reporting by Helena Soderpalm, Editing by Sherry Jacob-Phillips)