Ericsson (NASDAQ: ERIC) has agreed to buy cloud communications platform Vonage (NASDAQ: VG) for $21 per share. Furthermore, as per the agreement, Ericsson will pay the full consideration of $6.2 billion in cash. This price represents a premium of 28% to Vonage's closing share price on 19 November 2021 of $16.37 per share.
As per the agreement, Vonage will become a wholly-owned subsidiary of Ericsson. However, it will continue to operate under its current name. Additionally, the deal has already received unanimous approval from the Vonage Board of Directors.
The deal comes at a time when Ericsson is looking to expand its wireless enterprise globally. It also wants to gain an increased share of a market valued at $700 billion by 2030. Ericsson further expects the deal to be accretive...
