ERIC - Why Vonage Stock Soared Today

Shares of Vonage Holdings (NASDAQ: VG) jumped 27% on Monday after Ericsson (NASDAQ: ERIC) agreed to acquire the cloud communications provider.

The all-cash deal values Vonage at $6.2 billion, or $21 per share. That's a premium of 28% to the stock's closing price on Friday.

Acquiring Vonage will allow Ericsson to expand its presence in a wireless enterprise market that could grow to $700 billion by 2030. "Vonage gives us a platform to help our customers monetize the investments in the network, benefiting developers and businesses," Ericsson CEO Börje Ekholm said in a press release.

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