telecommunications
Ericsson wants to swallow cloud telephony provider Vonage
The Swedish network equipment supplier Ericsson wants to strengthen itself in the USA with a multi-billion dollar purchase. Photo: Mark Schiefelbein / AP / dpa
© dpa-infocom GmbH
It was only in 2020 that Ericsson took over the US network specialist Cradlepoint. Now the next billion dollar purchase is to follow.
The Swedish network equipment supplier Ericsson wants to strengthen itself in the USA with a multi-billion dollar purchase.
The provider of cloud-based communication Vonage is to be bought for 21 dollars per share, as the Nokia competitor announced on Monday.
Including debt, Vonage is valued at 6.2 billion dollars (5.5 billion euros). Completion is expected to be achieved in the first half of next year. Vonage management supports the takeover. Vonage’s closing price on Friday was $ 16.37.
Vonage is to become the full Ericsson subsidiary and keep the previous name. In the Swedes’ balance sheet, the Americans should be listed as a separate segment.
The cloud-based Vonage Communication Platform (VCP) currently contributes four-fifths of Vonage’s revenues. According to its own information, the company has more than 120,000 customers worldwide, including the pharmaceutical company Bayer, the pizza chain Domino’s and the Uber competitor Grab.