US approves Vonage acquisition of Ericsson for $6.2 billion

Swedish telecommunications equipment giant Ericsson AB ERIC -9.21%

said the Committee on Foreign Investment in the United States had cleared its $6.2 billion proposal to buy Vonage Holdings Corp.,

TB 0.51%

paving the way for the deal to be completed next week.

Ericsson said it now expects to complete the merger by Thursday, ahead of its previous guidance from late July. A spokesperson for the Treasury Department, which leads the Cfius panel, did not immediately return a request for comment.

One of the world’s largest makers of 5G cellular equipment, Ericsson announced plans to buy Vonage in November in a bid to expand into new businesses. The New Jersey-based company pioneered the sale of subscriptions that allow individuals to make voice calls over the Internet and is now focused on providing businesses with Internet-based communication services for customer service and others. uses.

Ericsson originally planned to complete the merger in the first half of this year, but said in late June those plans had been delayed for up to a month due to an investigation by Cfius, a secret government group that determines the impact of foreign transactions on US assets. national security.

Ericsson still faces other regulatory challenges in Washington. He said this week he was committed to cooperating with the Justice Department and the Securities and Exchange Commission, both of which are looking into whether the company failed to disclose alleged bribes to gain access to areas controlled by terrorists in Iraq. Ericsson said an internal investigation did not identify any employees directly involved in funding terrorist organizations and that its investigation resulted in disciplinary and corrective action.

Write to Stu Woo at [email protected]

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