Vonage Holdings Corp. (VG) experienced an incline of 26.08% in the premarket. However, the last trading session closed at $16.37 with a decrease of 2.09%.
Ericsson to acquire VG for USD 6.2 billion
On 22nd November 2021, the company announced that Ericsson is about to acquire VG for USD 21 per share in a cash and stock deal. This amounts to around USD 6.2 billion in total purchase costs (Enterprise Value). Moreover, VG’s Board of Directors approved the acquisition deal unanimously. The deal furthers Ericsson’s declared intention to grow worldwide in the wireless enterprise sector, giving existing clients a bigger piece of a market that’s expected to be worth USD 700 billion by 2030.
So what?
The company’s approach is around establishing leading mobile networks through technological leadership. This lays the groundwork for establishing a large-scale enterprise. In addition, the VG purchase is the next step in achieving that strategic goal.
Furthermore, VG provides a platform to assist the clients in monetizing their network investments, which benefits both developers and companies. Both teams working together are now making access to the power and potential of 5G possible.
Circle of Excellence Award – What’s happening?
VG announced on 10th November 2021 that Jim Regan is nominated for a 2021 Circle of Excellence award winner by Channel Futures. As part of Vonage Accelerate, the Company’s overarching strategic growth goal to accelerate and amplify emphasis, investments, and activities in the Channel, Vonage unveiled a revised Channel Partner Program and a new Partner Experience Portal in March 2021 under his supervision.
These increased capabilities are fueling channel partners’ sustained success throughout the world. This will give a better route to development and richer advantages to its increasing partner community by allowing them to produce excellent customer outcomes, accelerate company growth, and extend revenue possibilities.
What’s next?
The Circle of Excellence (COE) was established in 2014 to recognize ICT channel leaders that assist their partners in providing commercial value to their consumers. During this period of transition and convergence, the COE honors channel professionals, influencers, and leaders for their vision, innovation, and support for the indirect channel. In short, Jim Regan epitomizes the COE’s values.
Third Quarter Results by VG – Worth the finances?
VG disclosed third-quarter results 2021 on 4th November 2021. VCP revenue was $288 million, which included income from Unified Communications, Contact Center, and APIs. The income from VCP services increased by 25% to $274 million.
API revenue increased by 43% due to broad-based demand across countries, sectors, and clients. Revenue from unified communications and contact center services increased by 8%, exceeding forecasts. For the second quarter in a row, ten of our top 15 sales had a combined UC and CC solution. Lastly, VCP’s monthly service revenue per subscriber increased by 25% to $657.
