Ericsson has slashed £2.4 billion off the book value of Vonage, the American cloud communications provider it bought for £5 billion in 2022.
Ericsson blames increased interest rates which have caused a slowdown in Vonage’s markets and also a slump in the market capitalization of its publicly traded rivals
Ericsson said “Vonage remains critical to the enterprise strategy. Ericsson’s positive outlook on the potential of the Global Network Platform remains unchanged”
At the time of the acquisition Ericsson President and CEO Börje Ekholm, said “Imagine putting the power and capabilities of 5G, the biggest global innovation platform, at the fingertips of developers. Then back it with Vonage’s advanced capabilities, in a world of eight billion connected devices. Today, we are making that possible.”