Ericsson completed its $6.2 billion acquisition of Vonage Holdings Corp.
Originally announced in November, the Swedish telecommunications company said that the acquisition gives it the ability to offer a full suite of communications solutions, including Communications Platform as a Service (CPaaS), Unified communications as a service (UCaaS) and Contact Center as a Service (CCaaS).
Ericsson aims to transform the way advanced 5G network capabilities are exposed, consumed and paid for, thus providing the global developer community with access to 4G and 5G network capabilities via open Application Program Interfaces (APIs).
The existing market for communications APIs, such as video, voice and SMS, is currently growing at 30% annually and will reach $22 billion by 2025.
Ericsson intends to increase R&D investments and offer Vonage’s UCaaS and CCaaS solutions to communication service providers (CSPs), which will allow Ericsson’s customers to sell through their own brands and accelerate growth.
23 Main St., Holmdel, home of Vonage. – MACK-CALI REALTY CORP.
“We are excited to welcome Vonage as part of Ericsson. With Vonage’s suite of communications solutions – UCaaS, CCaaS and Communications APIs – Ericsson will further expand its offerings into the enterprise space. In the future, network capabilities will be consumed and paid for through open network APIs, creating the opportunity for unparalleled innovation,” said Ericsson President and CEO Börje Ekholm.
“We have already launched the first network API, Dynamic End-user Boost, based on existing 4G infrastructure. With Vonage, we will now develop and commercialize these new APIs. We are already seeing great progress with frontrunner CSPs, and we aim to launch the first 5G network APIs in the coming year. We will continue to create new, enhanced applications and services for enterprises, while driving continued innovation on Vonage’s UCaaS and CCaaS applications, helping businesses create new digital experiences for better communications, connections and engagement,” he said. “By linking the network world with the global developer community, we’re creating a paradigm shift that will put the network at the center, allowing the CSPs a new monetization opportunity supporting increasing investments in high-performance networks.”
Vonage will operate as an independent unit of Ericsson and CEO Rory Read will join that company’s executive team.
Currently, Vonage serves over 120,000 business customers, has a global community of more than 1 million registered developers, and a highly scaled platform with a combined 25 billion messages and minutes per year. It was recently named the leader in the Omdia Universe: Selecting a CPaaS Platform 2022 report, ranked in top positions on customer experience and solutions capability.
Additionally, the acquisition will further strengthen Ericsson’s presence and long-term commitment to the United States, where it has a 120-year history of conducting business.
“Vonage was born out of innovation and is today a global leader in business cloud communications. This partnership will strengthen our offerings to businesses across the globe by leveraging Ericsson’s leadership in 5G, global market presence and strong R&D capabilities,” Read said. “With the demand for UCaaS, CCaaS and Communications APIs growing rapidly, the combined expertise, talent and innovation is good news for our customers and partners.”
