Shares of Vonage , the cloud-based telecom company, soared in premarket trading Monday after agreeing to be acquired by Ericsson for $21 a share in cash.
The companies, in a statement Monday, said the deal had an enterprise value of $6.2 billion.
Vonage (ticker: VG) rose 26.8% to $20.75 in premarket trading. The stock closed Friday at $16.37. U.S.-listed shares of Ericsson (ERIC), the Swedish telecommunications group, fell 3.5% in premarket trading.
The board of Vonage unanimously approved the deal.
Ericsson said the acquisition builds upon its “stated intent to expand globally in wireless enterprise, offering existing customers an increased share of a market valued at $700 billion by 2030.”
“Vonage gives us a platform to help our customers monetize the investments in the network, benefitting developers and businesses,” said Ericsson Chief Executive Officer Borje Ekholm.
Vonage has been under pressure to sell itself since late summer from activist hedge fund Jana Partners, and was urged to hire a financial adviser to consider a sales process.
Write to Joe Woelfel at [email protected]
