Vonage Holdings

Vonage Holdings American is a provider of cloud communications services. The company offers a service that provides telephone communication through data transmission through computer networks (TCP/IP service). IP telephony It differs from the more famous services (for example,) in Skype that the user, when initially paying for communication services, receives a special adapter - a device that, being connected to a regular phone and to a dedicated Internet channel, allows you to use a regular phone as an IP phone.

History

2021: Ericsson bought Vonage Holdings for $6.2 billion

On November 22, 2021, the sale of Vonage Holdings to Ericsson was announced for $6.2 billion. We are talking about the largest purchase in the history of the Swedish manufacturer of telecommunications equipment. This acquisition will help Ericsson expand its 5G network portfolio.

The terms of the agreement provide that Ericsson will pay Vonage shareholders $21 for each security owned by them, which is 28% more than the quotation rate by November 19, 2021 and 34% higher than the average for the three months preceding the transaction. Ericsson will pay for the acquisition in full with its cash without attracting its shares.

Ericsson acquired Vonage Holdings for $6.2 billion

According to analysts cited by Reuters, Ericsson paid too much for the takeover of Vonage. In this regard, the rate of quotes of the Swedish company after the announcement of the transaction on November 22, 2021 fell by 3.8%, which was the worst indicator in the STOXX 600 index.

We see this acquisition as strengthening the vertical integration of Ericsson and the product range in the cloud space. But we also believe that the price is quite high, "said Mads Rosendal, an analyst at Danske Bank Credit Research.

By November 2021, more than 1 million registered developers and over 120 thousand business customers use Vonage technologies.^[1]

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