Ericsson will complete its acquisition of Vonage before July 21, 2022, as per its Merger Agreement.
The news comes after the Committee on Foreign Investments in the United States confirmed that the deal had gained clearance.
Initially announced in November 2021, the $6.2 billion acquisition aims to enable Ericsson to build upon its global network and create a communication platform for open innovation.
Speaking at the time, Börje Ekholm, President and CEO of Ericsson, said:
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.
Such an ambition comes as Ericsson strives to “expand globally in the wireless enterprise”.
Yet, with the acquisition, the company also gains an array of CX-related software, including UCaaS, CCaaS, and conversational AI technologies.
Moreover, Vonage has become a burgeoning player in the CPaaS space, recently achieving market leader status in an Omdia study.
Pairing such a suite of technologies with its 5G network will support businesses in speeding up enterprise digitization, accelerating CX transformation, and developing advanced APIs.
As a result, Ericsson aims to supplement the developer experience, putting the power of a next-generation wireless network and communications technologies at their fingertips.
Sharing his views on how such a strategy fits into the current technology climate, Rory Read, CEO of Vonage, stated:
The convergence of the internet, mobility, the cloud, and powerful 5G networks are forming the digital transformation and intelligent communications wave, which is driving a secular change in the way businesses operate. –
“The combination of our two companies offers exciting opportunities for customers, partners, developers and team members to capture this next wave.”
In terms of Ericsson’s longer-term future, the company aims to offer the “full ecosystem” – including telecom operators, developers, and businesses – by creating an open network innovation platform. It will base such a platform on the combination of Ericsson and Vonage technologies.
