Ericsson gets okay for $6.2 bn deal to buy Vonage

Sweden-based telecom network supplier Ericsson has received clearance from the U.S. national security panel to complete a $6.2-billion acquisition of cloud communications firm Vonage.
Ericsson has agreed to buy Vonage in November, seeking to diversify revenue streams and protect itself against the cyclical nature of wireless mobile spending. The purchase of Vonage is the largest acquisition in the history of Ericsson.

Ericsson last month said the closing of the acquisition was delayed to the end of July from the first half of the year, due to a pending investigation by the Committee on Foreign Investment in the United States (CFIUS).

After announcing the deal, Ericsson was embroiled in a scandal in February about payments to the Islamic State militant group in Iraq, triggering investigations by different U.S. agencies that fuelled concern its deal could be at risk.

Ericsson, one of the leading mobile network suppliers in the world, on Thursday announced that its Group reported sales rose 5 percent to SEK 62.5 billion during the second quarter of 2022 thanks to growth in four of the five market areas.