Ericsson closed a delayed $6.2 billion acquisition of Vonage less than a week after clearing the final regulatory hurdle and set the target of launching the first 5G APIs based on the company’s platform within 12 months.
Vonage becomes a separate division of Ericsson’s Business Area Global Communications Platform, with the Swedish vendor expecting a positive contribution to earnings from 2024.
Ericsson received clearance to proceed with the acquisition from the Committee on Foreign Investments in the US on 15 July, resulting in a slight delay from its original goal of completing the deal by end H1.
The Swedish vendor plans to offer as-a-service APIs for 4G and 5G networks to communications service providers (CSPs) and pledged to invest in R&D to expand on Vonage’s current systems.
Ericsson stated global communications API revenue is growing at a rate of 30 per cent a year and is forecast to hit $22 billion in 2025.
Borje Ekholm, president and CEO of Ericsson, stated the acquisition will connect the “network world with the global developer community” to open a new revenue opportunity for CSPs and in turn help justify investment in next-generation infrastructure.Subscribe to our daily newsletter Back