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Ericsson wants to modernize in the cloud acquires Vonage | Today Nation News

TechnologyEricsson wants to modernize in the cloud acquires Vonage...

International networking company Ericsson has recently decided that it needs modernization and has announced that it has acquired cloud telecommunications company Vonage for $ 6.2 billion.

With Vonage, Ericsson has a more modern approach to communications: contact centers in the cloud, communication APIs like Twilio, and voice over IP (VoIP). The company believes that the major parts of the Vonage family will be able to build 4G and 5G networking technologies.

According to Ericsson President and CEO Börje Ekholm, the acquisition is part of a strategy to serve many enterprise companies in the future. “This gives us the foundation to build an enterprise business. The acquisition of Vonage is the next step in providing that strategic priority,” he said in a statement. Vonage gives us a platform for customers to earn money from their network investments and benefit developers and businesses. “

Ericsson’s specific target is Vonage’s communication API. By doing so, the company believes it can break into the network of developers around the world building applications that use 4G and 5G.

According to Vonage CEO Rory Read, it’s an undeniably good deal, and a larger company that the two companies combine is ultimately good for him. “Joining Ericsson is the number one concern of our shareholders, a testament to Vonge’s leadership and innovative product portfolio in corporate cloud communications, as well as an outstanding team,” Read said in a statement. (A testimony). “

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Ericsson’s portfolio of technology isn’t the only thing Ericsson gets at Vonage. The company says it’s a healthy company with 12-month sales of $ 1.4 billion by September 30, with access to 120,000 customers and more than 1 million registered developers.

Vonage launched with a VoIP product in 2001 and had raised approximately $ 600 million before its listing in 2006, according to Crunchbase data. In 2018, it acquired the cloud-based contact center NewVoiceMedia for $ 350 million.

Today‘s merger requires Vonge’s board and regulatory approvals, but Ericsson predicts it will be completed in the first half of next year. Vonage’s share price soared 25% this morning due to the news. Ericsson doesn’t seem to be very attractive to investors, with stocks down 4.89% at the time of this writing.

Related article: Vonage brings number programmability to its business service

(Sentence: Ron Miller, Translation: Hiroshi Iwatani)
Image Credits: David Paul Morris / Getty Images

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