Ericsson targeted next month for the completion of its deal to buy US cloud communications company Vonage, as attempts to get the acquisition through the Committee on Foreign Investment in the United States continue.
In a stock market update on the proposed transaction, the Swedish network giant said it had received all necessary approvals for the deal with the exception of the US foreign investment authority. This includes other bodies in the US.
On announcing the $6.2 billion agreement in late 2021, Ericsson cited an expected closing date of H1 2022.
In its statement today (28 June) it reiterated both the company and Vonage were fully committed to the deal, which would be Ericsson’s largest acquisition to date.
Ericsson added it “continues to work closely” to secure the outstanding approval and was aiming to conclude the process “as expeditiously as possible.”
The vendor’s proposed buy of Vonage is part of a strategy to grasp the emerging communication platform as a service segment and grow its wireless enterprise business.
Explaining the rationale for the deal last year, Ericsson CEO Borje Ekholm said the new asset would give the vendor “a platform to help our customers monetise the investments in the network, benefiting developers and businesses.”