Manufacturer of mobile telecom equipment EricssonIt announced Monday that Vonage, a cloud communications company, had been purchased by it for $6.2 million.

This deal, which was Sweden’s largest in years, followed the acquisition in 2020 of Cradlepoint (a U.S-based wireless networking company) for $1.1billion.

Ericsson stated in a statement that the merger agreement had been approved unanimously by Vonage’s Board.

Ericsson has stated its intention to increase global wireless enterprise. The transaction will give existing customers greater access to a $700billion market, which is estimated at 700 billion in 2030.

From Sept. 30, 2021 to Sept. 30, 2021, Vonage generated $1.4 Billion in sales. This includes a 14% margin on adjusted earnings (before interest, tax, and depreciation) and a $109 Million free cash flow.

After a time when Borje Ekholm was CEO, the acquisition represents a new stage.

After Ericsson’s early 2000s expansion into multi-media, he has been focusing on restructuring the company and refocusing it.

This made it difficult to integrate its purchases with its business operations. It impacted margins and profit.

Vonage Communications Platform, a cloud-based communications platform, serves over 120,000 clients and has more than 500,000 registered developers worldwide.

Ericsson stated that it expects the deal will increase earnings per share, excluding non cash amortization effects, and provide free cash flow starting in 2024.

The deal will close within the first half 2022. This is subject to Vonage shareholders approval, regulatory approvals and other conditions.