VG - Together With Vonage Ericsson Is Paving The Way For The Metaverse

• The aim behind Ericsson's acquisition of Vonage can be likened to paving the way for the metaverse, as conceptualized by Facebook.
• Here, Vonage’s presence in CPaaS and integration with the social media giant for Workplace provides Ericsson with a significant opportunity to grow horizontally in cloud-based VoIP services.
• There are also opportunities to offer a more vertically integrated portfolio for 5G, IoT, and Vonage’s APIs, but this will require careful execution by Ericsson's management.
• It is also important to situate this acquisition in the current 5G context, with competitive dynamics evolving accordingly.
• In view of acquisition synergies and undervaluation relative to the IT sector, both companies are buys.

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