Ericsson’s proposed €6.2 billion acquisition of cloud-based communication specialist Vonage has been delayed by an investigation by the Committee on Foreign Investment in the United States.
The Swedish telecoms equipment giant had hoped to complete the deal by the first half of 2022, but now expects the transaction to go through next month. It added that it is working closely with authorities and that it has no reason to believe there will be any complications.
“The merger has cleared all other requisite foreign and US regulatory approval requirements, and the parties are working to conclude the regulatory process as expeditiously as possible,” it said.
“Ericsson and Vonage remain fully committed to this transaction and are working towards closing before end of July, 2022.”
Wireless power
Ericsson hopes the takeover will allow it to bring more of its 5G technology and expertise into the enterprise market and expand its overall portfolio for businesses.
“We are hiring an additional 250 software developers, engineers and architects with cloud native skills to enhance our capability to deliver the benefits of cloud native technologies to our global customer base via our RAN, Management, Automation and Orchestration offerings," said the firm.
Ericsson is one of several major network equipment providers (NEPs) looking to supply mobile operators as they continue their 5G rollouts. The development of cloud-based, software-defined technology, including RAN, is critical to this endeavour.
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