Acquisition to bring together Vonage’s CPaaS solutions and Ericsson’s global leadership in 5G technology
Ericsson has entered into an agreement to acquire Vonage to “expand globally in the wireless enterprise”.
The acquisition will see the combined offering of Vonage’s CPaaS solutions and Ericsson’s global leadership in 5G technology.
The two companies said that the capabilities of the 5G platform will be brought closer to developers and further accelerate “the digital transformation and intelligent communications wave”.
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 Vonage’s advanced capabilities, in a world of 8 billion connected devices. Today we are making that possible.”
Using Vonage’s complementary solutions, Ericsson plans to develop a platform for open network innovation that can be employed by telecom operators, developers, and businesses globally.
This news follows Ericsson’s successful integration of Cradlepoint, the US-based provider of Wireless Edge WAN 4G and 5G Enterprise solutions, in September 2020.
Rory Read, CEO of Vonage, says: “Ericsson and Vonage have a shared ambition to accelerate our long-term growth strategy. 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.”
“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 was agreed on $21 per share, bringing the total transaction price to approximately $6.2 billion.