The US foreign investment authority approved an Ericsson proposal to buy cloud communications provider Vonage for $6.2 billion, with the delayed deal set to close next week.
In a brief stock market statement, Ericsson indicated the deal had been cleared by the Committee on Foreign Investments in the United States, which had been the final regulatory hurdle it needed to navigate ahead of finalising the buy.
On first announcing the deal in November 2021, Ericsson estimated a closing date of H1 2022. However, last month the company revealed this had been revised to July as the US regulator was yet to give it the green light.
The acquisition is part of Ericsson’s attempts to increase its wireless enterprise business and grasp the opportunity it perceives in the communication platform-as-a-service segment.
Ericsson previously noted the combination of Vonage’s customer base and developer community with its network expertise would create opportunities. These include in accelerating enterprise digitalisation and developing advanced APIs made possible by 5G.
In the long term, the vendor intends to create a “global platform for open network innovation, built on Ericsson and Vonage’s complementary solutions”.
The deal is due to complete on, or before 21 July.Subscribe to our daily newsletter Back