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Mergers and Acquisitions


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cloud security

Cradlepoint Deepening SSE Capabilities with Ericom Software Purchase

  • Written by James Anderson
  • April 4, 2023
Ericom's ZTNA and other next-gen security capabilities will pair with Cradlepoint's cloud security offering and ultimately its SD-WAN offering.

Ericsson-owned Cradlepoint is bolstering its SASE and zero-trust security portfolio with the acquisition of Ericom Software.

Cradlepoint will add Ericom to its enterprise wireless solutions solutions portfolio. Specifically, the company plans to integrate Ericom capabilities into the Cradlepoint NetCloud Threat Defense cloud service. The Israel-based provider specializes in remote access and cloud-delivered web security. Moreover, Ericom possesses key components of secure access service edge (SASE). Those include secure web gateway (SWG), zero-trust network access (ZTNA) and cloud access security broker (CASB).

Cradlepoint in its strategy to deliver SASE is making its Threat Defense cloud services interoperable with its Exchange SD-WAN offering.

Mulhern, George_Cradlepoint

Cradlepoint’s George Mulhern

“We can now deliver a comprehensive SD-WAN and SASE solution for wireless WAN and private cellular networking, leveraging 5G while addressing the wireline needs of enterprise customers,” said George Mulhern, CEO of Cradlepoint and senior vice president of Ericsson’s enterprise wireless solutions group.

Ericom CEO David Canellos said Ericom’s security service edge (SSE) and zero-trust capabilities will pair well with Cradlepoint’s enterprise networking chops.

Canellos, David_Ericom

Ericom’s David Canellos

“The acquisition enhances our ability to meet the cybersecurity needs of global enterprises as they accelerate their rapid adoption of 5G technologies. We look forward to this exciting new chapter and its opportunities,” Canellos said.

Will Townsend, vice president and principal analyst of networking and security at Moor Insights & Strategy, said businesses looking for a “5G-centric deployment” approach will find the combined provider attractive. Cradlepoint positions its portfolios as for both hybrid 5G and wireline environments.

Townsend, Will

Moor Insights & Strategy’s Will Townsend

“Networking and security are rapidly merging within the enterprise, and the cloud is increasingly leveraged as the preferred SASE delivery mechanism,” Townsend said.

Partner Programs

Ericom in 2020 added multiple distributors, including Tech Data and Arrow Electronics, to its partner program. It also added many resellers, including Optiv Security and Red River.

The 2020 program refresh put the focus on Ericom’s zero-trust portfolio. For example, it adding training, support and incentives for offerings like its remote browser isolation service.

Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup.

Today Ericom lists its U.S. distributor as TD Synnex on its partner locator. It works with many other distributors in other countries.

Cradlepoint last month introduced a global MSP program.

Ericsson Strategy

Ericsson made two headline acquisitions in the last two years with the 2020 purchase of Cradlepoint and the 2022 acquisition of Vonage.

The company in its January annual report said it was introducing near-term capital allocation priorities targeting “9-12% free cash flow before M&A over net sales.” Moreover, the company stated that it would prioritize “organic and inorganic investments to support strategy execution and ensure technology and market leadership.”

“As the company is fully focused on delivering the Vonage and Cradlepoint acquisitions, M&A will be limited to bolt-on acquisitions with attractive returns and clear strategic fit,” Ericsson stated in its report.

The company also stated that wireless solutions played a key role in increasing its enterprise sales by 15% last year.

Ericom launched in 1993.

Want to contact the author directly about this story? Have ideas for a follow-up article? Email James Anderson or connect with him on LinkedIn.

 

Tags: VARs/SIs Cloud Service Providers MSPs Strategy Cloud Distribution Mergers and Acquisitions Mobility & Wireless SDN/SD-WAN Security

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