Ericsson to buy U.S. cloud company Vonage in $6.2 billion cash deal

Ericsson has agreed to bargain U.S.-based planetary cloud-communications supplier Vonage VG, -2.09% for $21 a share, with an endeavor worth of $6.2 billion, the companies announced connected Monday. The woody has been unanimously approved by Vonage's committee of directors, and volition physique connected Ericsson's aims to grow globally successful wireless enterprise, "offering existing customers an accrued stock of a marketplace valued astatine $700 cardinal by 2030," the Swedish telecoms-equipment shaper said. The cloud-based Vonage Communications Platform (VCP) has implicit 120,000 customers and much than 1 cardinal registered developers globally. Ericsson said the transaction would beryllium net and escaped cashflow accretive earlier mergers & acquisitions from 2024 onwards. Vonage closed Friday astatine $16.37 per share. Ericsson shares fell 3.4% successful Europe.