Ericsson [NASDAQ: ERIC] Announces Acquisition of Vonage

Telefonaktiebolaget LM Ericsson, generally known as Ericsson [NASDAQ: ERIC] disclosed that it has inked an agreement to buy Vonage Holdings Corp. [NASDAQ: VG] for USD 21 per share. This signifies a total buying price of around USD 6.2 billion. Ericsson revealed that the essence of its strategy is to build leading mobile networks through technology leadership. This offers the basis for building an enterprise business.

The company believed that the purchase of Vonage is the next step in highlighting that strategic priority. Vonage provides ERIC a platform to help its clients monetize the investments in the network, helping developers and businesses. The company revealed that it has the vision of placing the power and capabilities of 5G at the fingertips of developers.

Furthermore, Ericsson and Vonage have a common ambition to speed up its long-term growth strategy. The convergence of the internet, mobility, the cloud and powerful 5G networks are making up the digital conversion and intelligent communications wave, which drives mundane change in the way companies to operate.

Transaction Overview

In addition, the transaction is based upon Ericsson’s stated intention to expand around the world in the wireless enterprise. It has the vision to provide current clients with an increase in the proportion of a market estimated at USD 700 billion by 2030. The merger agreement was unanimously adopted by the Board of Vonage.

Moreover, the takeover is based upon the success of the consolidation of Cradlepoint in September 2020 for Ericsson. Cradlepoint continued to grow strongly under Ericsson’s ownership. The merger of two companies provides thrilling opportunities for customers, partners, developers, and team members to capture this next wave.