Aiming at 5G, Ericsson buys cloud computing company for $6 billion

The Swedish technology company Ericsson, which operates in the telecommunications sector , announced this week that it has signed an agreement to acquire the American company Vonage, a specialist in the field of cloud computing.

The deal — closed for US$ 6.2 billion (about R$ 34.7 billion at the current price) — is considered one of the biggest so far in the company’s history, and is part of the strategy to expand the range of services offered by Ericsson as 5G mobile network coverage advances — technology that could increase competitiveness and drive mobile market prices down.

In a press release, the company stated: “The transaction builds on Ericsson’s stated intention to expand globally, offering customers greater share of a market valued at US$700 billion by 2030.”

See too


Among its specialties, Vonage also works with other tools that help different categories of software to “talk” to each other. What Ericsson CFO Carl Mellander pointed out to Reuters that complements the telecom equipment maker’s business model.

Finally, it is worth mentioning that Vonage has more than 1 million registered developers and 120 thousand customers in the corporate environment. In just the last 12 months, the company registered US$ 1.4 billion in sales.

The expectation is that the negotiation, still subject to official approval by regulatory bodies and other conditions, will be concluded in the first half of next year.

Leave a Reply

Your email address will not be published.