Nov 29, 2021 MetriNote – Ericsson to Buy Vonage, CPaaS a Big Draw
What’s the news?
Nov. 22, 2021 – Global communications network technology stalwart Ericsson announced its intent to acquire cloud communications provider Vonage in a $6.2 billion cash deal expected to close in the first half of 2022, pending customary approvals and processes. The purchase reflects a $21 per-share price for Vonage, 28% over market value as of Friday, Nov. 19. Vonage, with a reported global customer base of more than 120,000 enterprises and over one million developers, will continue as a standalone business, and Ericsson has pledged to invest in the business for continued growth. But Ericsson revealed grander plans, based on Vonage’s communications platform-as-a-service (CPaaS) play. Over the longer term, Ericsson’s goal is to build a global network platform that allows for “open innovation and support in the creation of new experiences and full monetization of network investments” that service providers make in 5G to serve enterprises, as Börje Ekholm, company president and CEO, said during an analyst briefing. This will not happen without the ability of the global community of developers, such as those working with Vonage CPaaS, to access advanced 5G network APIs with ease so they can develop new “premium and exciting user experiences,” Ekholm said.