Ericsson (ERIC) gets regulatory nod for US$6.2-bn Vonage (VG) takeover

July 15, 2022 07:27 AM PDT | By Mridul Gogoi

Image source: © Mohammedsoliman4 | Megapixl.com

Vonage deal got delayed

Last month, Ericsson said that the Vonage deal closing was delayed by a few months due to a pending investigation by the Committee on Foreign Investment in the United States (CFIUS).

The deal was supposed to be completed in the first half of 2022.

The imbroglio related to Ericsson’s bribing scandal in Iraq triggered an investigation by the US Department of Justice and the Securities and Exchange Commission (SEC).

Soon after announcing the deal, Ericsson got dragged into the controversy in February, in which the company was accused of making payments to the Islamic State militant group in Iraq.

It led to a flurry of investigations by different US agencies, casting aspersions on the Vonage deal.

Bottom line:

Vonage shares closed at US$19.65 on the Nasdaq on Thursday. Ericsson offers a price of US$21 a share as per the agreement. Meanwhile, Ericsson shares have plummeted by a third of their value this year.

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