Sweden’s Ericsson to buy US cloud operator Vonage

STOCKHOLM: Ericsson stated on Monday it was buying US cloud-based communications supplier Vonage, within the Swedish firm’s largest acquisition in current reminiscence, because it widens its operations past its conventional telecommunications tools enterprise.

The $6.2 billion (5.5 billion euros) deal is a part of Ericsson’s technique to develop its presence in wi-fi enterprise and broaden its world choices, the corporate stated.

The provide was unanimously authorised by Vonage’s board of administrators, it stated.

Ericsson is among the many world’s largest telecom tools makers, battling China’s Huawei and Finland’s Nokia in fields akin to 5G networks.

At 21 {dollars}/share, the provide represents a 28 per cent premium over Vonage’s closing value on the tech-heavy Nasdaq inventory change on Friday.

Based in 2001, Vonage provides IP voice telephony and has lately developed a cloud-based communications platform.

The corporate has 120,000 clients, permitting a million builders entry to its API interface, which accounts for 80 per cent of its annual gross sales of $1.four billion.

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