-=Vonage (VG) to be acquired by Ericsson (ERIC) for $21.00 per share

 

Vonage to be acquired by Ericsson (ERIC) for $21.00 per share 

• Ericsson (ERIC) has entered into an agreement to acquire Vonage (VG) for $21 per share. This represents a total acquisition price of approximately $6.2 billion (Enterprise Value).
• The merger agreement was approved unanimously by the Board of Vonage. The transaction builds upon Ericsson's stated intent to expand globally in wireless enterprise, offering existing customers an increased share of a market valued at $700 billion by 2030.
• The transaction is expected to deliver near-term revenue synergy opportunities, including white-labelling and cross-selling of the combined product portfolio estimated to contribute $0.4 billion by 2025. Ericsson also expects to achieve some cost efficiencies following completion of the transaction.
• The transaction is expected to be accretive to EPS (excluding non-cash amortization impacts) and free cash flow before M&A from 2024 onwards.
• Ericsson remains fully committed to previously communicated financial targets, including long-term EBITA margins of 15-18%; long term FCF before M&A of 9-12% of sales; and a 2022 target EBIT margin of 12-14% for Ericsson Group excluding Vonage.