Vonage Holdings Corp VG is trading significantly higher Monday after the company announced it would be acquired by Ericsson ERIC in a $6.2 billion acquisition.
Ericsson entered into an agreement to acquire Vonage for $21 per share. Pending shareholder approval, the transaction is expected to close in the first half of 2022.
"Ericsson and Vonage have a shared ambition to accelerate our long-term growth strategy. The convergence of the internet, mobility, the cloud and powerful 5G networks are forming the digital transformation and intelligent communications wave, which is driving a secular change in the way businesses operate," said Rory Read, CEO of Vonage.
Read continued, "The combination of our two companies offers exciting opportunities for customers, partners, developers and team members to capture this next wave."
Related Link: Ericsson To Acquire Vonage At 28% Premium
Vonage is a North American technology company that provides cloud communication services to businesses and consumers.
VG Price Action: Vonage has traded as low as $10.85 over a 52-week period.
The stock was up 25.10% at $20.47 at time of publication.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
