Ericsson to acquire cloud communications provider Vonage in $6.2 billion deal

The Swedish network equipment vendor will acquire all of Vonage’s outstanding shares at an all-cash price of USD 21 per share. On completion, Vonage will become a wholly-owned subsidiary of Ericsson and will continue to operate under its existing name.

Ericsson announced today that it has entered into an agreement to acquire Vonage Holdings Corp., a global provider of cloud-based communications, for approximately USD 6.2 billion. The agreement underlines the company's strategy to expand its presence in the wireless enterprise and broaden its global offerings.

"The acquisition of Vonage is the next step in delivering on that strategic priority. 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," said Borje Ekholm, President and CEO of Ericsson.

The Swedish network equipment vendor will acquire all of Vonage’s outstanding shares at an all-cash price of USD 21 per share. On completion, Vonage will become a wholly-owned subsidiary of Ericsson and will continue to operate under its existing name.

The cloud-based Vonage Communications Platform (VCP) accounts for approximately 80% of Vonage’s current revenues and serves more than one million registered developers globally. Vonage also provides Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) solutions as part of the Vonage Communications Platform.

Commenting on the acquisition, Rory Read, CEO of Vonage, said, Ericsson and Vonage have a shared ambition to accelerate our long-term growth strategy. The combination of our two companies offers exciting opportunities for customers, partners, developers and team members to capture this next wave."

The transaction is expected to complete within the first half of 2022, subject to Vonage shareholder approval, regulatory approvals and other customary conditions.