TalkingPointz Research on Ericsson and Vonage
9 page report on Ericsson's move to acquire Vonage.
1. General
- On the morning of Monday, Nov. 22, 2021, Ericsson announced it had reached an agreement to acquire Vonage for $6.2B. Both boards have approved the deal.
- The deal is expected to close in 1H22. It still requires the approval of Vonage shareholders and the Committee on Foreign Investment in the United States (CFIUS).
- Terms of the deal include $21/share to VG shareholders.
- The merger represents a premium of 28% to Vonage’s closing share price on Nov. 19 ($16.37) and a premium of 34% to the three-month volume-weighted average share price ($15.71).
- Ericsson intends to fund the acquisition through existing cash resources.
2. About Vonage
- Vonage is a diversified provider of enterprise communications services. As one of the original VoIP providers, it has a pioneering history that continues to this day. It has been ahead of most industry transitions and today offers one of the broadest business communications and collaboration portfolios in the industry.
- Vonage is a pioneer in VoIP residential services. The company began its shift from consumer to business services with its 2013 acquis...