Ericsson has announced that it will record a non-cash impairment charge of 11.4 billion Swedish crowns ($1.09 billion) in the second quarter of 2024, primarily reflecting lower anticipated market growth rates in Vonage’s current portfolio.
Ericsson had acquired Vonage, a cloud communication provider, for $6.2bn in 2022.
Niklas Heuveldop, Head of Business Area Global Communications Platform and CEO of Vonage says: “Given deterioration in the market environment and elective decisions we have made to refocus our investments in strategically prioritized areas, we have reassessed certain growth assumptions, resulting in a non-cash impairment of SEK 11.4 billion.”
Niklas Heuveldop adds: “We continue to advance our strategy to build a Global Network Platform for network APIs, which was the strategic impetus for the Vonage acquisition. We recently announced additional partnerships with leading mobile network operators and we see continued positive momentum across the industry. Through this strategy, we are making advanced 5G network capabilities available to the world’s developer community to accelerate the innovation of value-added applications for industry and society. This will open up new revenue streams for our operator customers and spur growth in the telecom industry.”
