Ericsson has entered into an agreement to acquire Vonage Holdings for $6.2 billion. Completion of the transaction is expected within the first half of 2022.
Vonage is a provider of cloud-based communications.
One of the biggest ever for Ericsson, the acquisition builds upon Ericsson’s stated intent to expand globally in wireless enterprise
“Vonage gives us a platform to help our customers monetize the investments in the network, benefitting developers and businesses. Imagine putting the power and capabilities of 5G, the biggest global innovation platform, at the fingertips of developers. Then back it with Vonage’s advanced capabilities, in a world of 8 billion connected devices,” said Borje Ekholm, President and CEO of Ericsson.
Vonage’s presence in the Communication Platform as a Service (CPaaS) segment will provide Ericsson with an opportunity to access a complementary, substantial and high growth segment.