The transaction follows Ericsson’s September 2020 acquisition of Cradlepoint and builds upon the company’s intent to expand globally in wireless enterprise.
Börje Ekholm, president and CEO of Ericsson (pictured), explained, “Vonage gives us a platform to help our customers monetise 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. Today we are making that possible.”
Rory Read, CEO of Vonage, added, “The combination of our two companies offers exciting opportunities for customers, partners, developers and team members to capture this next wave. We believe joining Ericsson is in the best interests of our shareholders and is a testament to Vonage’s leadership position in business cloud communications, our innovative product portfolio, and outstanding team.”
The acquisition will be financed through Ericsson’s existing cash resources and, on completion, Vonage will become a wholly owned subsidiary of Ericsson and will continue to operate under its existing name.
Completion of the transaction is subject to Vonage shareholder approval, regulatory approvals and other customary conditions and is expected within the first half of 2022.