Ericsson announced the acquisition of Vonage in November 2021
Ericsson said it expects the deal to buy U.S. cloud communications company Vonez to expire before the end of July, as the seller continues to work with the U.S. Foreign Investment Committee to get approval for the proposed acquisition.
In a stock market update of the proposed transaction, the Swedish seller said it had received all necessary approvals for the deal, with the exception of the U.S. Foreign Investment Authority. According to published press reports, that timeline represents a delay in the termination of the contract, as the CFIUS review continues. How complex is the scope of an active Securities and Exchange Commission investigation into Ericsson’s activities in Iraq, and Alleged bribery allegationsMay affect the proposed consolidation.
“The merger has cleared all other necessary foreign and U.S. regulatory approvals and the parties are working to complete the regulatory process as soon as possible. Ericsson and Vonage are fully committed to this transaction and are working to close before the end of July, 2022, ”Ericsson said.
In November 2021, Ericsson announced the acquisition of Vonage in a 6.2 billion deal, saying the proposed acquisition would be fundamental to creating a cloud-centric platform focused on open innovation.
Ericsson said the purchase underscores its strategy to expand its presence in the wireless enterprise and expand its global offerings.
The network equipment company stressed that Vonage’s “strong performance and growth potential” is built on its Vonage Communication Platform (VCP). Ericsson noted that VCP provides about 80% of Vonage’s total revenue and serves more than one million registered developers worldwide, who create apps for approximately 120,000 business customers.
“Imagine the power of the 5G network at the fingertips of developers — a huge, global innovation platform, and then support it with Vonage Advanced Communication Services in a world of 8 billion connected devices,” said Echoson, president and CEO of Ericsson.
“The demand for business digitization and connected applications, especially video, is growing rapidly. This will continue for the foreseeable future, which means a huge opportunity for Ericsson, for our customers, for business and, ultimately, for end users, ”Ekholm added.
In determining the location of transactions, Ericsson will complement Vonage’s communications platform as a complementary and high-growth field and, ultimately, fuel the enterprise 5G application and ecosystem. “With increased investment in 4G and 5G – and a rich ecosystem of new applications and uses to harness the power of modern networks – the demand for initiatives for programmable networks has accelerated,” Ericsson explained the acquisition. “In addition, Ericsson’s global leadership in 5G technology is expected to provide access to developing locations for the Open Network API, which is expected to reach at least USD $ 8 billion by the end of the decade with a strong growth profile. সমন্ব Combining Vonage’s customer base and developing community and Ericsson’s deep network skills সুযোগ creates opportunities to accelerate unique strategies and innovations in the market. These include accelerating enterprise digitization and developing advanced APIs made possible by 5G; Installing wireless networks and communication power at the fingertips of the developer.
