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ERICSSON TO BUY VONAGE FOR $6.2 BILLION, BULKING UP CLOUD PRESENCE


PANDEMIC HAS SPARKED WAVE OF ACQUISITIONS IN CLOUD-COMMUNICATIONS SOFTWARE
INDUSTRY

How Cloud Computing Became a Big Tech Battleground
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How Cloud Computing Became a Big Tech Battleground

Big tech firms are investing in data centers as they compete for the $214
billion cloud computing market. WSJ explains what cloud computing is, why big
tech is betting big on future contracts in this video from 2019.
By
Dominic Chopping
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DOMINIC CHOPPING

 * Biography
 * dominic.chopping@wsj.com

Nov. 22, 2021 5:01 am ET

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STOCKHOLM— Ericsson AB agreed to buy cloud-communications provider Vonage
Holdings Corp. , for $6.2 billion, in deal that the Swedish telecom-equipment
maker said will expand its wireless enterprise business and broaden its global
offerings.

Ericsson, in what would be its biggest deal ever, agreed to pay $21 a share in
cash for Vonage, representing a 28% premium to Friday’s closing share price. The
purchase, which Holmdel, N.J.-based Vonage’s board has approved, will be
financed through Ericsson’s existing cash resources.

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