Ericsson to acquire Vonage for $6.2 billion

guest · Nov 22, 2021

Ericsson to acquire Vonage for $6.2 billion
Ericsson is focused on improving its position in the CPaaS market and expanding its 5G assets
November 22, 2021
https://www.zdnet.com/article/ericsson-to-acquire-vonage-for-6-2-billion/

Ericsson has agreed to acquire Voice over IP (VoIP) and B2B communications provider Vonage for $0.21 per share, or a total purchase price of approximately $6.2 billion. This represents a 28% premium over Vonage's share price at the close of the most recent trading day.

According to Ericsson's President and CEO Börje Ekholm, the transaction is his company's "next step" toward "putting the power and capabilities of 5G, the biggest global innovation platform, at the fingertips of developers."
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While Vonage is best known as a VoIP company, Ericsson appears primarily interested in its cloud-based Vonage Communications Platform (VCP). The platform currently serves over 120,000 accounts and represents more than 80 percent of Vonage's revenue, Ericsson noted.

Ericsson also purchased Cradlepoint, an edge networking company, in 2020.
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Combined with the Vonage acquisition, Cradlepoint will help Ericsson create a growing presence in the Communications Platform as a Service (CPaaS) segment.

Over the long term, Ericsson intends to leverage the "complementary solutions" brought together by the transaction to create a range of new solutions for telecom operations, developers, and businesses.
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Ericsson: Ericsson to acquire Vonage for USD 6.2 billion to spearhead the creation of a global network and communication platform for open innovation

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