Ericsson Completes Vonage Acquisition

Ericsson has completed its acquisition of Vonage Holdings, bringing to Ericsson the building blocks to offer a full suite of cloud-based communications, contact center, and unified commuunications platforms. The $6.2 billion deal was first announced in late November.

To accelerate growth in Vonage's UCaaS and CCaaS solutions, Ericsson intends to increase R&D investments and offer these solutions to communications services providers. Ericsson will also complement existing communications offerings to small and midsized companies with the Vonage UCaaS and CCaaS solutions.

"We are excited to welcome Vonage as part of Ericsson. With Vonage's suite of communications solutions--UCaaS, CCaaS and Communications APIs--Ericsson will further expand its offerings into the enterprise space," said Börje Ekholm, president and CEO of Ericsson, in a statement. "We will continue to create new, enhanced applications and services for enterprises, while driving continued innovation on Vonage's UCaaS and CCaaS applications, helping businesses create new digital experiences for better communications, connections, and engagement."

"Vonage was born out of innovation and is today a global leader in business cloud communications. This partnership will strengthen our offerings to businesses across the globe by leveraging Ericsson's leadership in 5G, global market presence, and strong R&D capabilities. With the demand for UCaaS, CCaaS, and Communications APIs growing rapidly, the combined expertise, talent and innovation is good news for our customers and partners," said Rory Read, Vonage's CEO, in a statement. "The way we work, shop, learn, see a doctor, exercise, and entertain is fundamentally changing. Together, Ericsson and Vonage will be at the heart of the next wave of the digital transformation, providing enterprises, CSPs, and end users with innovative applications and services that will change how business gets done. We will drive deeper connections and engagement among employees and across customer touchpoints, making for exceptional experiences."

Vonage will become a separate business area within the Ericsson Group, called Business Area Global Communications Platform (BGCP). Vonage will continue to operate under its existing name.