Published on 22 Nov 2021 on Zacks via Yahoo Finance
Ericsson (ERIC) Inks Deal to Acquire Vonage for $6.2 Billion
Ericsson ERIC has inked a deal to acquire Vonage Holdings Corp. VG for $21 per share or almost $6.2 billion in cash.Headquartered in Holmdel, NJ, Vonage is a global provider of cloud-based communications. The company has a strong track record of growth and margin expansion.The deal has been approved unanimously by Vonage’s board of directors. The acquisition highlights Ericsson’s strategy to expand its presence in the wireless enterprise and broaden its offerings.Vonage’s Communications Platform (VCP) serves more than 120,000 customers and 1 million registered developers globally. VCP accounts for nearly 80% of its total revenues.Vonage’s presence in the Communication Platform as a Service segment will allow Ericsson to access a substantial and high growth segment. Ericsson’s leadership in 5G technology will boost the developing space for open network application programming interfaces.Ericsson continues to expand its footprint by leveraging its competitive 5G portfolio. The stock has lost 9.4% in the past year against the industry’s growth of 26.6%.
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