US probe delays Ericsson's Vonage deal

Tuesday, 28. June 2022 12:21

Telefonaktiebolaget LM Ericsson revealed on Tuesday that its acquisition of Vonage Holdings Corp. has been delayed due to an investigation by the United States Committee on Foreign Investment. The $6.2 billion deal was supposed to close in the first half of 2022.

The Swedish company said it "continues to work closely" with the committee and that the merger "has cleared all other requisite foreign and US regulatory approval requirements, and the parties are working to conclude the regulatory process as expeditiously as possible." It now expects the transaction to close by the end of July.

Ericsson's shares dropped 1.32%, while Vonage saw its stock jump 6.6% in premarket trade.

Related Links: Vonage Holdings Corp.EricssonEricsson
Author:
Baha Breaking News (BBN) / DJ