The price is set including debt, and the transaction should be completed in the first half of next year. Vonage’s board of directors unanimously supported the agreement, but it has yet to be approved by Vonage shareholders as well as regulators.
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Vonage had revenue of $ 1.4 billion for the fiscal year to late September. The company’s cloud communications platform serves more than 120,000 customers and more than one million registered developers worldwide.
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The transaction is in line with Ericsson’s plan to expand worldwide in wireless networks and increase market share. It also represents a new stage in the company’s planned direction under the leadership of CEO Börje Ekholm.
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He took office in 2017 and decided to focus on restructuring the company and changing its focus. At the beginning of this millennium, Ericsson focused on a number of multimedia areas, but struggled with the fact that its purchases often could not be properly put into operation, which burdened the group’s profits and margins.
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