Published on 15 Jul 2022 on Benzinga via Yahoo Finance

Ericsson's $6.2B Vonage Buyout Receives US Panel's Clearance

Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) received clearance from the Committee on Foreign Investments in the U.S. to complete its acquisition of Vonage Holdings Corp (NASDAQ: VG).This represents the final requisite approval to complete the deal.The parties now expect the Merger to close by July 21.Ericsson agreed to acquire Vonage for $6.2 billion to expand its presence in the wireless enterprise and broaden its global offerings.Related: Ericsson Shares Slump As Lower IPR Revenues Hit Q2 Margins.The deal was supposed to be closed by 1H of 2022 but delayed until the end of July due to a pending investigation by the U.S. national security panel.Reuters reported that since February, Ericsson had faced a bribing scandal about payments to Iraq's Islamic State militant group, triggering investigations by different U.S. agencies.The investigations could also derail the deal.Price Action: VG stock is up 6.72% at $20.97, and ERIC shares are up 0.59% at $6.84 during the premarket session on the last check Friday.

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