LONDON — Swedish telecom gear maker Ericsson is shopping for U.S. cloud communications company Vonage in a $6.2 billion deal that may assist it broaden wi-fi providers for enterprise clients.
The acquisition would additionally give it entry to software program builders who can construct new functions to reap the benefits of options constructed into new fifth era excessive pace wi-fi networks that Ericsson is constructing.
CEO Borje Ekholm mentioned the acquisition is the “next step” on delivering its strategic precedence of constructing main cell networks.
“Vonage provides us a platform to assist our clients monetize the investments in the community, benefitting builders and companies,” Ekholm mentioned in a press assertion.
Ericsson agreed to buy Vonage for $21 a share in the all-cash deal, which is 28% increased than Vonage’s closing share value on Friday. The deal is anticipated to shut in the primary half of 2022.
Vonage, based about 20 years in the past and primarily based in Holmdel, N.J., was a pioneer of internet-based phone service. It has developed right into a platform for utility programming interfaces that enable completely different software program functions to talk with one another.