Ericsson acquires Vonage for £5.2bn

Published by

Hamza Fareed Malik

Telecommunications company Ericsson has completed its $6.2bn (£5.2bn) acquisition of American cloud communications company Vonage.

Vonage is now a wholly-owned subsidiary of Ericsson and will become a separate business area within Ericsson. Vonage common stock has stopped trading and will not be listed on the Nasdaq Global Select Market now.

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Vonage will still operate under its current name and brand, as part of Ericsson.

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Current Vonage CEO Rory Read will be Senior Vice President and Head of Business Area Global Communications Platform as well as a member of the company’s Executive Team.

The acquisition was funded with cash on hand.

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Rory Read said, “Vonage was born out of innovation and is today a global leader in business cloud communications. This partnership will strengthen our offerings to businesses across the globe by leveraging Ericsson’s leadership in 5G, global market presence and strong R&D capabilities.”

Börje Ekholm, President and CEO of the company, said, “We are excited to welcome Vonage as part of Ericsson.”