Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  NASDAQ OMX STOCKHOLM  >  Ericsson AB    ERIC B   SE0000108656

ERICSSON AB

(ERIC B)
  Report
Delayed Quote. Delayed NASDAQ OMX STOCKHOLM - 10/23 11:29:59 am
108.45 SEK   -0.50%
10/22THE U.S. VS. CHINA : The High Cost of the -2-
DJ
10/22THE U.S. VS. CHINA : The High Cost of the Technology Cold War -- Journal Report
DJ
10/22ERICSSON B : Goldman Sachs reiterates its Buy rating
MD
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Ericsson : to buy networking specialist Cradlepoint in $1.1 billion 5G deal

share with twitter share with LinkedIn share with facebook
09/18/2020 | 06:17am EDT
An Ericsson logo is pictured at Mobile World Congress (MWC) in Shanghai

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.

Cradlepoint, which will become a subsidiary of Ericsson, sells routers and a subscription-based wireless networking service.

A rival of Cisco, Cradlepoint had sales of 1.2 billion crowns ($137 million) in 2019, with a gross margin of 61%. Ericsson estimates that Cradlepoint's revenue will be about 1.6 billion crowns this year.

"The acquisition is expensive, but the price tag is tolerable given high underlying growth rates and Ericsson's potential for revenue expansion in the enterprise market," said Societe Generale analyst Aleksander Peterc.

While Cradlepoint has mostly focused on the U.S. market, Ericsson aims to take the products outside North America and plans to keep it as a standalone business with its own sales team.

"Where we have struggled in the past is when we have started to integrate on the sales side. That's when you lose track of all your go-to-market channels and customer interactions," said Ericsson CEO Borje Ekholm.

Ericsson's last big deal was in 2007, when it bought data network equipment vendor Redback Networks for $2.1 billion.

The transaction, which is expected to close before the end of this year, will dent Ericsson's operating margins by about 1% in 2021 and 2022. The company expects the takeover to start contributing to operating cash flow from 2022.

Ericsson said its 2022 group financial targets remain unchanged.

By Helena Soderpalm and Supantha Mukherjee


Stocks mentioned in the article
ChangeLast1st jan.
CISCO SYSTEMS, INC. 0.00% 38.82 Delayed Quote.-19.06%
ERICSSON AB -0.50% 108.45 Delayed Quote.32.97%
share with twitter share with LinkedIn share with facebook
All news about ERICSSON AB
10/22THE U.S. VS. CHINA : The High Cost of the -2-
DJ
10/22THE U.S. VS. CHINA : The High Cost of the Technology Cold War -- Journal Report
DJ
10/22ERICSSON B : Goldman Sachs reiterates its Buy rating
MD
10/22ERICSSON B : Credit Suisse gives a Buy rating
MD
10/22ERICSSON B : JP Morgan reiterates its Buy rating
MD
10/21Markets mixed with all eyes on U.S. stimulus talks
RE
10/21Markets mixed with all eyes on stimulus talks
RE
10/21EUROPE : European stocks fall as healthcare, construction sectors drag
RE
10/21CHINA TO SWEDEN : drop Huawei ban, or face fallout
RE
10/21GLOBAL MARKETS LIVE: A flurry of earnings reports
More news
Financials
Sales 2020 232 B 26 552 M 26 552 M
Net income 2020 15 319 M 1 753 M 1 753 M
Net cash 2020 19 440 M 2 225 M 2 225 M
P/E ratio 2020 23,6x
Yield 2020 1,48%
Capitalization 363 B 41 373 M 41 535 M
EV / Sales 2020 1,48x
EV / Sales 2021 1,37x
Nbr of Employees 99 826
Free-Float 89,0%
Chart ERICSSON AB
Duration : Period :
Ericsson AB Technical Analysis Chart | ERIC B | SE0000108656 | MarketScreener
Technical analysis trends ERICSSON AB
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 115,26 SEK
Last Close Price 108,45 SEK
Spread / Highest target 22,6%
Spread / Average Target 6,28%
Spread / Lowest Target -20,7%
EPS Revisions
Managers
NameTitle
Erik Börje Ekholm President, Chief Executive Officer & Director
Ronnie Leten Chairman
Carl Mellander CFO, Senior VP & Head-Group Function Finance
Erik Ekudden Chief Technology Officer & Senior Vice President
Torbjörn Nyman Director
Sector and Competitors
1st jan.Capitalization (M$)
ERICSSON AB32.97%41 373
CISCO SYSTEMS, INC.-19.06%163 860
FOXCONN INDUSTRIAL INTERNET CO., LTD.-25.62%40 384
MOTOROLA SOLUTIONS, INC.8.46%29 675
NOKIA OYJ9.25%23 994
ZTE CORPORATION-5.54%21 086