STATUS: Clearance; Mitigation

Acquirer: Telefonaktiebolaget LM Ericsson (Sweden)

Acquired: Vonage Holdings Corp. (US)

Value: US$6.2 billion

Industry Tags: Telecommunications

Global telecommunication network,

Update:  In relation to the acquisition by Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) of Vonage Holdings Corp. (NASDAQ: VG), in which CFIUS clearance was obtained, Ericsson reported that it was “subject to . . . a National Security Agreement entered into with the U.S. Government in connection with the acquisition of Vonage by Ericsson, and approval of the transaction by the Committee on Foreign Investment in the United States.” (LM Ericsson Telephone Company Form 6-K, July 14, 2023, SEC Filing.)

Posted on May 6, 2022
Status: Upcoming/New Filing

On November 22, 2021, Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) entered into an agreement to acquire Vonage Holdings Corp. (NASDAQ: VG), “a global provider of cloud-based communications,” for $6.2 billion.  (Press Release, Vonage Form 8-K, Ex-99.1, Nov. 22, 2021, SEC Filing.)  CFIUS clearance is a condition to closing.  (Agreement and Plan of Merger, Section 7.1(b)(iii), Vonage Form 8-K, Ex-2.1, Nov. 22, 2021, SEC Filing.)  The parties “filed a ‘declaration’ with CFIUS on December 29, 2021.” (Vonage Definitive Proxy Agreement, Jan. 10, 2022, SEC Filing.)  As of February 9, 2022, “the Merger remain[ed] subject to CFIUS Clearance.” (Vonage Form 8-K, Feb. 10, 2022, SEC Filing.) The parties have now satisfied all requisite foreign and U.S. regulatory requirements for the closing of the Merger, including as relates to the Hart-Scott-Rodino (HSR) Act and the Committee on Foreign Investment in the United States.”  (Vonage Holdings Corp. Form 8-K, July 14, 2022, SEC Filing.)