Benzinga | Nov 22, 2021 10:43AM EST

Why Vonage Shares Are Soaring Today

Vonage Holdings Corp (NASDAQ:VG) is trading significantly higher Monday after the company announced it would be acquired by Ericsson (NASDAQ:ERIC) in a $6.2 billion acquisition.

Ericsson entered into an agreement to acquire Vonage for $21 per share. Pending shareholder approval, the transaction is expected to close in the first half of 2022.

"Ericsson and Vonage have a shared ambition to accelerate our long-term growth strategy. The convergence of the internet, mobility, the cloud and powerful 5G networks are forming the digital transformation and intelligent communications wave, which is driving a secular change in the way businesses operate," said Rory Read, CEO of Vonage.

Read continued, "The combination of our two companies offers exciting opportunities for customers, partners, developers and team members to capture this next wave."

Related Link: Ericsson To Acquire Vonage At 28% Premium

Vonage is a North American technology company that provides cloud communication services to businesses and consumers.

VG Price Action: Vonage has traded as low as $10.85 over a 52-week period.

The stock was up 25.10% at $20.47 at time of publication.