Swedish telecommunications equipment maker Ericsson announced on Monday that it will acquire US cloud provider Vonage.
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The $ 6.2 billion (€ 5.5 billion) deal is the largest in recent years for a Swedish company to expand its wireless technology market and expand its global reach.
Ericsson has announced that its offer has been accepted unanimously by Vonage’s Board of Directors.
Ericsson’s bid of $ 21 a share is 28% higher than Vonage’s stock closed on Friday.
The transaction is planned to be completed in the first half of 2022. This requires the consent of Vonage shareholders as well as regulators.
The Swedish company is one of the world’s largest manufacturers of telecommunications equipment, competing with China’s Huawei and Finland’s Nokia 5G network equipment sector.
Founded in 2001, Vonage offers IP voice communications. In recent years, it has developed a communication platform based on cloud technologies.
The US company has 120,000 customers, allowing one million developers to access its application programming interface (API). API provides 80% of the company’s $ 1.4 billion in revenue per year.