Ericsson’s $6.2 Billion Acquisition of Vonage

Weil, Gotshal & Manges advised Vonage Holdings Corp. on the deal. Freshfields represented Ericsson.

Ericsson (NASDAQ: ERIC) has entered into an agreement to acquire Vonage Holdings Corp. (NASDAQ: VG) for USD 21 per share. This represents a total acquisition price of approximately USD 6.2 billion (Enterprise Value).  

The merger agreement was approved unanimously by the Board of Vonage. The transaction builds upon Ericsson’s stated intent to expand globally in wireless enterprise, offering existing customers an increased share of a market valued at USD 700 billion by 2030.

The acquisition will be conducted by means of a merger agreement through which Ericsson will acquire all of Vonage’s outstanding shares at an all-cash price of USD 21 per share. The merger consideration represents a premium of 28% to Vonage’s closing share price on 19 November 2021 of USD 16.37 per share, and a premium of 34% to the volume-weighted average share price over the 3 months to 19 November 2021 of USD 15.71 per share.  

The acquisition will be financed through Ericsson’s existing cash resources, which amounted to SEK 88 billion as of 30 September 2021 on a gross basis, and SEK 56 billion on a net basis as of the same date.

Ericsson enables communications service providers to capture the full value of connectivity. The company’s portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help our customers go digital, increase efficiency and find new revenue streams.

Vonage, a global provider of cloud-based communications, has a strong track record of growth and margin evolution. The cloud-based Vonage Communications Platform (VCP) serves over 120,000 customers and more than one million registered developers globally.

The Weil team advising Vonage Holdings Corp. was led by Mergers & Acquisitions partner Michael J. Aiello (Picture) and included Mergers & Acquisitions partner Matthew Gilroy, Mergers & Acquisitions counsel Megan Pendleton and Mergers & Acquisitions associates Iliana Karaoglan, Chukwudi Udeogalanya, Dorothy Coco and Amanda Gould (Not Yet Admitted in New York). The team also included Executive Compensation & Benefits Head Paul Wessel; Executive Compensation & Benefits associates Lauren Sawyer (Not Yet Admitted in New York) and Robin Caskey; Technology & IP Transactions partner Jeffrey Osterman; Technology & IP Transactions/Privacy associates Kane Wishart, Catherine Kim and Tyler Fredricks; International Tax Head Devon Bodoh; Tax partners Stuart Goldring and Greg Featherman; Tax counsel Eric Behl-Remijan; Tax associate Hector Beason; Public Company Advisory Group partner P.J. Himelfarb; Capital Markets partner Corey Chivers; Capital Markets associate Paul Heller (Admitted in Canada Only); Regulatory Transactions partner Shawn Cooley; Regulatory Transactions associate Nathan Cunningham; Antitrust partner John Scribner; Antitrust counsel Neil Rigby; and Antitrust associates Marie-Marie de Fays and Alexandra Ampudia.

The Freshfields team is led by corporate/M&A partners Joseph Halloum and Ethan Klingsberg and associates Tomas Rua, Thomas Lair, Tatiana Charlot and Chinyere Obi, IP/tech transactions partner Mena Kaplan and associates Daniel Spencer, Sally Wu and Jennifer Lei, executive compensation and employee benefits partner Lori Goodman and associates Andrew Herman and Chaim Leggere, data privacy and security partner Christine Lyon, counsel Brock Dahl and associate Susannah Benjamin, global national security and foreign investment partner Aimen Mir, special counsel Christine Laciak, antitrust partners Megan Rissmiller and Rafique Bachour, counsel Meredith Mommers and associates Chinwe Chukwuogo, Timothy Swartz, Iris Zhou, Claire Smith and Sophie Sperlich, sanctions and export controls partner Nabeel Yousef and associate Amy Cattle, tax partner Claude Stansbury and associate Brendan Counihan, financing and capital markets partners Brian Rance, Kyle Lakin, Martin Hutchings, Michael Levitt and counsel Taryn Zucker, and compliance and litigation partners Olivia Radin and Tim Harkness and associates Emmeline Chen and Jennifer King.

Involved fees earner: Rafique Bachour – Freshfields Bruckhaus Deringer LLP; Amy Cattle – Freshfields Bruckhaus Deringer LLP; Tatiana Charlot – Freshfields Bruckhaus Deringer LLP; Emmeline Chen – Freshfields Bruckhaus Deringer LLP; Brendan Counihan – Freshfields Bruckhaus Deringer LLP; Brock Dahl – Freshfields Bruckhaus Deringer LLP; Lori Goodman – Freshfields Bruckhaus Deringer LLP; Joseph Halloum – Freshfields Bruckhaus Deringer LLP; Timothy Harkness – Freshfields Bruckhaus Deringer LLP; Andrew Herman – Freshfields Bruckhaus Deringer LLP; Martin Hutchings – Freshfields Bruckhaus Deringer LLP; Mena Kaplan – Freshfields Bruckhaus Deringer LLP; Ethan Klingsberg – Freshfields Bruckhaus Deringer LLP; Christine Laciak – Freshfields Bruckhaus Deringer LLP; Thomas Lair – Freshfields Bruckhaus Deringer LLP; Kyle Lakin – Freshfields Bruckhaus Deringer LLP; Jennifer Lei – Freshfields Bruckhaus Deringer LLP; Michael Levitt – Freshfields Bruckhaus Deringer LLP; Christine Lyon – Freshfields Bruckhaus Deringer LLP; Aimen Mir – Freshfields Bruckhaus Deringer LLP; Meredith Mommers – Freshfields Bruckhaus Deringer LLP; Chinyere Obi – Freshfields Bruckhaus Deringer LLP; Olivia Radin – Freshfields Bruckhaus Deringer LLP; Brian Rance – Freshfields Bruckhaus Deringer LLP; Meghan Rissmiller – Freshfields Bruckhaus Deringer LLP; Tomas Rua – Freshfields Bruckhaus Deringer LLP; Claire Smith – Freshfields Bruckhaus Deringer LLP; Daniel Spencer – Freshfields Bruckhaus Deringer LLP; Sophie Sperlich – Freshfields Bruckhaus Deringer LLP; Claude Stansbury – Freshfields Bruckhaus Deringer LLP; Sally Wu – Freshfields Bruckhaus Deringer LLP; Nabeel Yousef – Freshfields Bruckhaus Deringer LLP; Iris Zhou – Freshfields Bruckhaus Deringer LLP; Taryn Zucker – Freshfields Bruckhaus Deringer LLP; Michael Aiello – Weil, Gotshal & Manges; Alexandra Ampudia – Weil, Gotshal & Manges; Hector Beason – Weil, Gotshal & Manges; Eric Behl-Remijan – Weil, Gotshal & Manges; Devon Bodoh – Weil, Gotshal & Manges; Robin Caskey – Weil, Gotshal & Manges; Corey Chivers – Weil, Gotshal & Manges; Dorothy Coco – Weil, Gotshal & Manges; Shawn Cooley – Weil, Gotshal & Manges; Nathan Cunningham – Weil, Gotshal & Manges; Marie-Marie de Fays – Weil, Gotshal & Manges; Greg Featherman – Weil, Gotshal & Manges; Tyler Fredricks – Weil, Gotshal & Manges; Matthew Gilroy – Weil, Gotshal & Manges; Stuart Goldring – Weil, Gotshal & Manges; Paul Heller – Weil, Gotshal & Manges; P.J. Himelfarb – Weil, Gotshal & Manges; Iliana Karaoglan – Weil, Gotshal & Manges; Catherine Kim – Weil, Gotshal & Manges; Jeffrey Osterman – Weil, Gotshal & Manges; Megan Pendleton – Weil, Gotshal & Manges; Neil Rigby – Weil, Gotshal & Manges; Lauren Sawyer – Weil, Gotshal & Manges; John Scribner – Weil, Gotshal & Manges; Chukwudi Udeogalanya – Weil, Gotshal & Manges; Paul Wessel – Weil, Gotshal & Manges; Kane Wishart – Weil, Gotshal & Manges;

Law Firms: Freshfields Bruckhaus Deringer LLP; Weil, Gotshal & Manges;

Clients: Ericsson; Vonage Holdings Corp.;