This is one of the biggest deals in Erickson’s history. The company is now entering the field of corporate networks that are dressing up the fifth generation cellular infrastructure.
Communications infrastructure maker Ericsson has announced that it has agreed to acquire $ 6.2 billion in cloud communications company Vonage (VG.O) as telecom maker moves to expand its 5G basket.
The merger agreement was unanimously approved by the Wenge Board of Directors. The deal is based on Erickson’s stated intention to expand worldwide in providing infrastructure to the wireless organization, and offers existing customers an increased market share estimated at $ 700 billion by 2030.
The deal, one of the largest in Ericsson’s history, follows the $ 1.1 billion acquisition of Cradlepoint last year, which gave it access to tools that can connect devices via the Internet of Things in a 4G or 5G network.
US-based Vonage manufactures an application programming interface (API) that helps various programs communicate with each other.
Burja Eckholm, President and CEO of Ericsson, says: “The core of our strategy is to build leading-edge cellular networks through technological leadership and now expand our presence into the corporate realm. Acquiring Vonage is the next step in the transition to this strategic priority.