Shares of Ericcson (STO: ERICa) soared over 2% today after the company agreed to buy wireless networking company Cradlepoint in a $1.1 billion deal.
“We think this will give our customers a chance to generate new income sources within the enterprise segment,” Ericsson finance chief Carl Mellander told Reuters.
With this deal, Ericcson will get better access to tools that are needed for Internet of Things (IoT). The Sweden-based designer of telecom gear hopes to complete the deal before the end of the year.
“We have a good process where we are continuously scanning the market,” Mellander said.
Cradlepoint is Cisco’s rival as it sells routers. Last year, it recorded sales of 1.2 billion crowns ($137 million). This marks the biggest acquisition for Ericcson in a decade.
Ericcson share price soared over 2% as it trades near the record highs at 107.40.
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