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.
Source Fool.com