Erickson fell 7% with the announcement of the acquisition of Vonage

by time news

Erickson is engaged in communications in the field of communications – cellular antenna installations, equipment for the fifth generation infrastructure, etc., and through the acquisition it is interested in expanding the field of activity and approaching end consumers with various communication technologies. In the case of Vonage, this is communication on top of the cloud environment.

While the Vonage stock closed its trading day last Friday on Wall Street at $ 16.37 a share, the deal is set to be executed at a price of $ 21 a share. As a result, last night it closed at $ 20.6 per share, reflecting a value of $ 5.2 billion, an increase of about 26%.

In the 12 months ending in late September, Vonage sold $ 1.4 billion and ended the period with $ 109 million in cash. Barricson said in announcing the deal that the motive behind it was the company’s intention to “expand globally with corporations in the field of wireless communications, which has a market potential of $ 700 billion a year by 2030.”

Ericsson CEO Borya Eckholm said “Vonage provides us with a platform that will help our clients monitor their online investments, with both developers and businesses benefiting.”

The acquirer’s shareholders as well as regulators still need to approve the deal after the board has given it the green light. Hedge fund Janna Partners, with a 4% stake in the company, has been pressuring it to consider selling it for several months.

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