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Ericsson: acquires Vonage

( - Ericsson says that it has completed the acquisition of cloud-based communications provider Vonage Holdings Corp, supporting its strategy to leverage technology leadership to grow its mobile and enterprise network businesses.

It says that this acquisition gives Ericsson access to powerful building blocks to deliver a full suite of communications solutions, including the communications platform as a service (CPaaS), UCaaS and CCaaS.

The transaction is expected to be accretive to Ericsson's EPS and pre-M&A FCF from 2024. Vonage will become a separate business area within the Scandinavian group - called Business Area Global Communications Platform (BGCP).

Investors seem to be nodding in approval - without excessive enthusiasm, with the share up about 0.7% this afternoon, outperforming the index by about 0.5% as things stand.

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