Ericsson signs multibillion acquisition deal with US company
Swedish telecommunications giant Ericsson has snapped up US cloud-service provider Vonage in a multibillion dollar deal, its biggest acquisition in recent memory.
The 6.2 billion dollar (around 55 billion kronor) deal is part of Ericsson's strategy to expand its presence in wireless enterprise and broaden its global offerings, the company said.
The offer was unanimously approved by Vonage's board of directors, it said.
Ericsson is among the world's biggest telecom equipment makers, battling China's Huawei and Finland's Nokia in fields such as 5G networks.
At 21 dollars per share, the offer represents a 28-percent premium over Vonage's closing price on the tech-heavy Nasdaq stock exchange on Friday.
Founded in 2001, Vonage offers IP voice telephony and has in recent years developed a cloud-based communications platform.
The company has 120,000 customers, allowing one million developers access to its API interface which accounts for 80 percent of its annual sales of $1.4 billion.
Comments
See Also
The 6.2 billion dollar (around 55 billion kronor) deal is part of Ericsson's strategy to expand its presence in wireless enterprise and broaden its global offerings, the company said.
The offer was unanimously approved by Vonage's board of directors, it said.
Ericsson is among the world's biggest telecom equipment makers, battling China's Huawei and Finland's Nokia in fields such as 5G networks.
At 21 dollars per share, the offer represents a 28-percent premium over Vonage's closing price on the tech-heavy Nasdaq stock exchange on Friday.
Founded in 2001, Vonage offers IP voice telephony and has in recent years developed a cloud-based communications platform.
The company has 120,000 customers, allowing one million developers access to its API interface which accounts for 80 percent of its annual sales of $1.4 billion.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.