By Helena Soderpalm and Supantha Mukherjee
STOCKHOLM (Reuters) – Ericsson has agreed to buy U.S.-based wireless networking company Cradlepoint in a $1.1 billion deal, the Swedish telecoms gear maker said on Friday, as part of plans to expand its 5G-related products for business customers.
The deal, Ericsson’s largest in more than a decade, would give it access to tools that can connect devices using the so-called Internet of Things over a 4G or a 5G network.
“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.
Ericsson plans to sell Cradlepoint products to its mobile operator customers, who can create new revenue streams by selling it to their business clients.
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