Ericsson Pays Billions for Vonage Acquisition

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Ericsson acquires US cloud company Vonage. It pays $6.2 billion for that. Vonage was founded in 2001 and is headquartered in the US state of New Jersey.


The company, led by Rory Read, generated $1.4 billion in sales last year with an EBITDA margin of 14 percent. The company has 120,000 customers and more than one million registered developers.

The acquisition is one of the largest ever for Ericsson and has the full support of Vonage’s board, but remains subject to approval by Vonage shareholders and the relevant regulators. Ericsson expects to complete the acquisition in the first half of next year.

Among other things, Vonage has its Vonage Communications Platform, which accounts for eighty percent of its revenue. At the same time, it also provides Unified Communications (UCaaS) and Contact Center services (CCaas) on that platform.

Börje Ekholm, Ericsson’s CEO, sees the acquisition as the foundation for building an enterprise business. “Vonage gives us a platform to help our customers monetize their investments in the network, benefiting developers and businesses.”

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