Ericsson's $6.2B Vonage Buyout Receives US Panel's Clearance
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- Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) received clearance from the Committee on Foreign Investments in the U.S. to complete its acquisition of Vonage Holdings Corp (NASDAQ:VG).
- This represents the final requisite approval to complete the deal.
- The parties now expect the Merger to close by July 21.
- Ericsson agreed to acquire Vonage for $6.2 billion to expand its presence in the wireless enterprise and broaden its global offerings.
- Related: Ericsson Shares Slump As Lower IPR Revenues Hit Q2 Margins.
- The deal was supposed to be closed by 1H of 2022 but delayed until the end of July due to a pending investigation by the U.S. national security panel.
- Reuters reported that since February, Ericsson had faced a bribing scandal about payments to Iraq's Islamic State militant group, triggering investigations by different U.S. agencies.
- The investigations could also derail the deal.
- Price Action: VG stock is up 6.72% at $20.97, and ERIC shares are up 0.59% at $6.84 during the premarket session on the last check Friday.