Ericsson is focused on improving its position in the CPaaS market and expanding its 5G assets
Ericsson has agreed to acquire Voice over IP (VoIP) and B2B communications provider Vonage $ 6.2 Billion
- Ericsson enters into an agreement for USD 6.2 billion cash offer to acquire Vonage, a global provider of cloud-based communications, with the unanimous approval of the Vonage Board of Directors
- The acquisition underlines Ericsson strategy to expand its presence in the wireless enterprise and broaden its global offerings
- Robust performance and growth prospects are built on Vonage Communications Platform (VCP), which delivers about 80% of Vonage’s total revenues and, serves more than one million registered developers globally
- Transaction expected to be accretive to Ericsson’s EPS (excluding non-cash amortization impacts) and free cash flow before M&A from 2024 onwards
- Closing expected in the first half of 2022, subject to Vonage shareholder approval, regulatory approvals, and other customary conditions