Ericsson may acquire Vonage in 2022 while concerns remain
In November 2021, Vonage agreed to an acquisition by Ericsson for $6.2 billion in cash. Ericsson plans to expand its 4G and 5G capabilities through Vonage. Ericsson aims to leverage Vonage’s successful Vonage Communications Platform (VCP), which enables customers to integrate video and communication into their existing products. The company expects Communication Platform as a Service (CPaaS) to grow 30.0% annually to 2025, reaching $22.0 billion. In early 2022, reports of Ericsson purchasing trade routes in Iraqi territory controlled by terrorist organizations including the Islamic State threatened confidence in the merger.
New Activity|M&AIn response to volatile demand in the wake of the first COVID-19 surge, the company undertook a comprehensive cost reduction program, aimed at shoring up labor and supply costs.
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