BOISE, Idaho — Boise-based software, hardware and services company Cradlepoint has a new owner after selling for $1.1 billion on Friday.
The company, which works with subscription cloud-based software as well as Wireless Edge WAN 4G and 5G Enterprise solutions support and hardware, was acquired by Ericsson, Cradlepoint leadership announced Friday.
"This is about growth and this is about taking a technology that's going to revolutionize networking for the enterprise," Cradlepoint CEO and Chairman George Mulhern told KTVB.
The business will continue to operate under its existing brand, and Cradlepoint employees will remain with the Boise company. Founded in 2006, the company currently employs about 650 people.
"We have led the way in bringing the power of cellular networks and technologies to enterprise and public sector customers – helping them connect beyond the limits of traditional wired WANs. Ericsson with its global 5G leadership is a great match for us and I am very excited to continue to scale and expand our business together," Mulhern said in a press release.
The deal is expected to close before the end of the year, with the full $1.1 billion paid upon closing. According to Ericsson, the two companies have collaborated for more than a decade, starting with the launch of 4G in the U.S.
"Portfolio-near acquisitions are an integral part of our earlier communicated strategy. The acquisition of Cradlepoint complements our existing offerings and is key to our strategy of helping customers grow the value of their 5G network investments," said Ericsson President and CEO Börje Ekholm in a statement. "Ericsson is uniquely positioned to build on Cradlepoint's leadership position in Wireless Edge and the wireless WAN market. Combining the scale of our market access and established relationships with the world's biggest mobile operators we are making a strong investment to support our customers to grow in this exciting market. I would like to extend a very warm welcome to all Cradlepoint employees."
Mulhern adds this deal is not only beneficial for the companies, but the community. as well.
"Ericsson is very interested in investing in the Boise site and continuing to build our business and I think we're going to be able to create more jobs in the valley and more growth opportunities for our existing employees," Mulhern said.
He told KTVB, there are currently 80 job openings with the company, but they expect to have more openings in 2021.
In addition to the Boise headquarters, Cradlepoint also has a research and development center in Silicon Valley and market offices in the United Kingdom and Australia that will also be part of the acquisition.