Press release
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● Ericsson to acquire Vonage for USD 6.2 billion to spearhead the creation of a global network and communication platform for open innovation ● PRESS RELEASE November 22 , 2021 ● E ERICSSON Ericsson enters into agreement for USD 6.2 billion cash offer to acquire Vonage , a global provider of cloud - based communications , with unanimous approval of the Vonage Board of Directors Acquisition underlines Ericsson strategy to expand its presence in wireless enterprise and broaden its global offerings Robust performance and growth prospects are built on Vonage Communications Platform ( VCP ) , which delivers about 80 % of Vonage's total revenues and , serves more than one million registered developers globally Transaction expected to be accretive to Ericsson's EPS ( excluding non - cash amortization impacts ) and free cash flow before M & A from 2024 onwards Closing expected in the first half of 2022 , subject to Vonage shareholder approval , regulatory approvals , and other customary conditions Ericsson ( NASDAQ : ERIC ) has entered into an agreement to acquire Vonage Holdings Corp. ( NASDAQ : VG ) for USD 21 per share . This represents a total acquisition price of approximately USD 6.2 billion ( Enterprise Value ) . The merger agreement was approved unanimously by the Board of Vonage . The transaction builds upon Ericsson's stated intent to expand globally in wireless enterprise , offering existing customers an increased share of a market valued at USD 700 billion by 2030 . Börje Ekholm , President and CEO of Ericsson , says : " The core of our strategy is to build leading mobile networks through technology leadership . This provides the foundation to build an enterprise business . The acquisition of Vonage is the next step in delivering on that strategic priority . Vonage gives us a platform to help our customers monetize 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 1 ( 8 )