According to foreign media reports, on Friday local time, Swedish telecommunications equipment manufacturer Ericsson said that it has agreed to acquire Cradlepoint, a US 5G solution provider, for US$1.1 billion.
The transaction value reached 1.1 billion U.S. dollars, and Ericsson stated that the purchase price of 1.1 billion U.S. dollars will be paid in full upon completion of the transaction and will be paid in cash.
The transaction is expected to be completed before the end of the fourth quarter of 2020, depending on the conditions for completing the contract. Ericsson believes that this transaction will help expand its 5G business.
After the acquisition is completed, Cradlepoint will become a wholly-owned subsidiary of Ericsson and will continue to operate under its existing brand.
Ericsson expects that the company’s operating profit margin in 2021 and 2022 will be negatively affected by approximately 1%. Cradlepoint is expected to contribute revenue to Ericsson from 2022.
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