Advertisement
Advertisement

Ericsson’s $6.2 billion Vonage takeover delayed over U.S. review

By:
Reuters
Updated: Jun 28, 2022, 06:51 UTC

OSLO/STOCKHOLM (Reuters) - Ericsson said on Tuesday the closing of its $6.2 billion Vonage acquisition was delayed to the end of July, from the first half of the year, due to a pending investigation by a U.S. national security panel.

The Ericsson logo is seen at the Ericsson's headquarters in Stockholm

OSLO/STOCKHOLM (Reuters) – Ericsson said on Tuesday the closing of its $6.2 billion Vonage acquisition was delayed to the end of July, from the first half of the year, due to a pending investigation by a U.S. national security panel.

The Swedish telecom equipment maker agreed to buy cloud communications firm Vonage in all-cash deal in November, as part of its efforts to broaden its 5G portfolio.

But, since then, Ericsson has faced a bribing scandal in Iraq that has led to the U.S. Department of Justice and the Securities and Exchange Commission (SEC) opening investigations against the company.

Several analysts had estimated that the probes could either delay getting approval for the deal from U.S. regulators or even derail it.

The deal is currently under review by the Committee on Foreign Investment in the United States (CFIUS), an interagency panel that reviews foreign investments for potential national security risks.

“Given that the committee’s review is ongoing, we cannot comment on any specifics,” an Ericsson spokesperson said.

Ericsson also said both the companies were working closely with CFIUS and the deal has cleared all other requisite foreign and U.S. regulatory approval requirements. The deal is one of the largest in Ericsson’s history.

(Reporting by Terje Solsvik and Supantha Mukherjee; editing by Uttaresh.V)

About the Author

Reuterscontributor

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products:

Did you find this article useful?

Advertisement