Ericsson Gets Final Regulatory Approval From CFIUS To Acquire Vonage Holdings

Telecom major Ericsson (ERIC) said on Friday that it has received necessary approval from the Committee on Foreign Investments in the U.S. or CFIUS to complete the acquisition of Vonage Holdings Corporation (VG), a cloud communications provider.

With this, the both parties have now received the final requisite approval to complete the proposed transaction, expected to be closed no later than July 21.

Last year, Ericsson had inked a deal to buy Vonage for an enterprise value of $21 per share or around $6.2 billion. The acquisition is projected to be added to Ericsson's profit from 2024.

The telecom firm also expects the acquisition to further support its wireless enterprise across the globe, by providing its existing customers with an increased share of a market valued at $700 billion by 2030.

For the year to September 2021, Vonage had posted sales of $1.4 billion with an adjusted EBITDA margin of 14 percent.

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