Ericsson buys cloud services company Vonage for $ 6.2 billion
Swedish telecommunications equipment maker Ericsson announces purchase of U.S. cloud communications company Vonage in $ 6.2 billion deal that will help expand wireless services for business customers
LONDON – Swedish telecommunications equipment maker Ericsson is buying US cloud communications company Vonage in a $ 6.2 billion deal that will help it expand wireless services for business customers.
The acquisition would also give it access to software developers who can build new applications to take advantage of the functionality built into the new, fifth-generation high-speed wireless networks that Ericsson is building.
CEO Borje Ekholm said the purchase is the “next step” in achieving his strategic priority of building leading mobile networks.
“Vonage provides us with a platform to help our customers monetize network investments, for the benefit of developers and businesses,” Ekholm said in a press release.
Ericsson agreed to buy Vonage for $ 21 per share as part of the cash transaction, which is 28% higher than Vonage’s closing share price on Friday. The agreement is expected to be finalized in the first half of 2022.
Vonage, founded about two decades ago and headquartered in Holmdel, New Jersey, was a pioneer in Internet telephone service. It has become a platform of application programming interfaces that allow different software applications to communicate with each other.