Ericsson Aims To Close Proposed Acquisition Of Vonage By July End

(RTTNews) - Ericsson (ERIC), Swedish telecom major, said on Tuesday that it is closely working with the Committee on Foreign Investment in U.S. as it is reviewing the proposed acquisition of Vonage Holdings Corporation (VG), a business cloud communications provider.

Ericsson said it has "cleared all other necessary foreign and U.S. regulatory approval requirements, and the parties are working to conclude the regulatory process as expeditiously as possible."

Both parties are aiming to complete the transaction by the end of July.

In November 2021, Ericsson had inked a deal to buy the New Jersey-headquartered firm for an enterprise value of $21 per share or around $6.2 billion.

Transaction is expected to add to Ericsson's profit from 2024.

Ericsson believes the acquisition will boost its wireless enterprise across the globe, by providing its existing customers with an increased share of a market valued at $700 billion by 2030.

For the 12-month period to September 2021, Vonage had posted sales of $1.4 billion with an adjusted EBITDA margin of 14 percent.