Ericsson Completes Vonage Acquisition

By Dominic Chopping

STOCKHOLM--Ericsson AB said Thursday it has completed its acquisition of Vonage Holdings Corp., a deal that had been held up as U.S. regulators assessed how it could affect national security.

In November, the Swedish telecom-equipment company announced the $6.2 billion acquisition to buy Vonage, a New Jersey-based company that was a pioneer in selling subscriptions for individuals to make voice calls over the internet. Vonage now focuses on providing businesses with internet-based telecommunications services for customer service, among other uses.

The company said the deal is expected to be accretive to earnings per share and free cash flow before mergers and acquisitions from 2024 onward, while delivering near-term revenue and cost synergies.

Vonage will become a separate business area within the Ericsson group, called Business Area Global Communications Platform, but will continue to operate under its existing name and brand and will be headed by Vonage Chief Executive Rory Read.

Ericsson said it remains committed to its previously announced 2022 margin and long-term financial targets.

Vonage is currently engaged with the U.S. Federal Trade Commission to resolve an investigation into historic consumer practices which was initiated in 2020, it added.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

July 21, 2022 10:01 ET (14:01 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.