Updated: November 22, 2021 07:01 AM
Created: November 22, 2021 05:33 AM
LONDON (AP) - Swedish telecom equipment maker Ericsson is buying U.S. cloud communications company Vonage in a $6.2 billion deal that will help it expand wireless services for business customers.
The acquisition would also give it access to software developers who can build new applications to take advantage of features built into new fifth generation high speed wireless networks that Ericsson is building.
CEO Borje Ekholm said the purchase is the "next step" on delivering its strategic priority of building leading mobile networks.
"Vonage gives us a platform to help our customers monetize the investments in the network, benefitting developers and businesses," Ekholm said in a press statement.
Ericsson agreed to buy Vonage for $21 a share in the all-cash deal, which is 28% higher than Vonage's closing share price on Friday. The deal is expected to close in the first half of 2022.
Vonage, founded about two decades ago and based in Holmdel, N.J., was a pioneer of internet-based telephone service. It has evolved into a platform for application programming interfaces that allow different software applications to communicate with each other.
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