Ericsson skips debt for $1.1bn US acquisition

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By Mike Turner
21 Sep 2020

Ericsson, the Swedish telecoms infrastructure manufacturer, has agreed to buy US connectivity company Cradlepoint for $1.1bn using cash on hand, as corporate bankers say cash-rich companies are less inclined to visit debt markets to fund acquisitions after months of frantic debt raising.

Ericsson is paying a $1.1bn enterprise value for Cradlepoint, which includes debt, in a deal expected to close before the end of the last quarter of 2020. Cradlepoint is a US market leader in wireless 4G and 5G for business.

The acquisition will add about $137m of sales a ...

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