Ericsson Completes Acquisition of Vonage

Ericsson has completed its acquisition of Vonage. The acquisition provides them with access to building blocks to offer a full suite of communications solutions including, Communications Platform as a Service (CPaaS), UCaaS, and CCaaS.

A delayed $6.2 billion acquisition was finalized less than a week after clearing the final regulatory hurdle. Ericsson has set the target of launching the first 5G APIs based on the company’s platform within 12 months. Vonage becomes a separate division of Ericsson’s Business Area Global Communications Platform, with the Swedish vendor expecting a positive contribution to earnings from 2024.

“With Vonage’s suite of communications solutions, Ericsson will further expand its offerings into the enterprise space. In the future, network capabilities will be consumed and paid for through open network APIs, creating the opportunity for unparalleled innovation. We have already launched the first network API, Dynamic End-user Boost, based on the existing 4G infrastructure. With Vonage, we will now develop and commercialize these new APIs. By linking the network world with the global developer community, we’re creating a paradigm shift that will put the network at the center, allowing the CSPs a new monetization opportunity supporting increasing investments in high-performance networks,“ said Börje Ekholm, President, and CEO of Ericsson.

“4G was the platform that allowed the consumer to digitalize. It opened new business models and created some of the fastest-growing companies in history. With 5G, we have an innovation platform, unlike anything we’ve seen before, offering almost limitless opportunities to develop super-fast, highly reliable, low-latency, and mission-critical services. With 5G, we will see accelerated digitalization of enterprises with Vonage’s UCaaS and CCaaS suite being a solid growth platform,“ concluded Ekholm.