Ericsson is purchasing cloud firm Vonage for $6.2 billion. “The merger agreement was passed unanimously by the Board of Vonage,” Ericsson said in a statement. The acquisition is to expand globally in the wireless enterprise and offer existing customers an increased share of a market valued at $700 billion by 2030.

Vonage saw sales of $1.4 billion in the 12 months with a margin on adjusted EBITDA of 14 per cent and a cash flow of $109 million. The purchase represents a new phase after Borje Ekholm took became CEO of the firm in 2017. Vonage Communications has over 120,000 customers base and more than 1 million registered developers worldwide. Ericsson said it is expected that the deal will boost earnings per share, excluding non-cash amortisation impacts and free cash flow by the year 2024.