UPDATE Ericsson (NASDAQ: ERIC) continues to work closely with the U.S. Committee on Foreign Investment as the Committee reviews Ericsson’s proposed acquisition of Vonage Holdings Corp. (NASDAQ: VG). The merger has cleared all other requisite foreign and U.S. regulatory approval requirements, and the parties are working to conclude the regulatory process as expeditiously as possible. Ericsson and Vonage remain fully committed to the transaction, initiated in November 2021, and are working towards closing before the end of July 2022.
Ericsson sees Vonage, a global provider of cloud-based communications, as a high-value complement to its wireless network product line and services. The flagship cloud-based Vonage Communications Platform (VCP) serves over 120,000 customers and more than one million registered developers globally and accounts for approximately 80 percent of Vonage’s current revenues.
The Application Programming Interface (API) platform within VCP allows developers to embed high quality communications – including messaging, voice, and video – into applications and products, without back-end infrastructure or interfaces.
In addition, Vonage’s presence in the Communication Platform as a Service (CPaaS) segment will provide Ericsson with an opportunity to access a complementary, sizable, high growth segment.
With increasing investments in 4G and 5G along with a robust ecosystem of new applications and use cases, demand from Enterprises for programmable networks has been accelerating. CPaaS technologies democratize network access by offering API-enabled communications services.
Mobile network operator customers will also benefit from monetizing their network investments, optimizing the user experience, and stimulating additional growth opportunities with new and advanced global network APIs and access to Vonage’s unified communications and contact center solutions.
The combination of Vonage’s customer base and developer community and Ericsson’s deep network expertise, extensive R&D capabilities and global reach, create opportunities to accelerate standalone strategies and innovation in the market.
Longer term, Ericsson intends to add value to the full ecosystem of MNOs, Enterprises, and developers by creating a global platform for open network innovation, built on Ericsson and Vonage’s complementary solutions.
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