M&A · Tech · Telephone Communications (No Radiotelephone)
Ericsson LM Telephone Co to acquire Vonage Holdings Corp
Announced Nov 22, 2021 · Closed Jul 21, 2022
Deal value$6.20BEV $5.75B
Premium28.0%To unaffected price
EV / Adj. EBITDA31.0x4.2x EV / Revenue
ConsiderationAll cash$21.00 per share
Transaction
- Acquirer
- Ericsson LM Telephone Co (ERIC)
- Target
- Vonage Holdings Corp
- Buyer type
- Strategic
- Offer price per share
- $21.00
- Enterprise value
- $5.75B
- Status
- Closed Jul 21, 2022
Deal protections
- Break fee (target pays)
- $200M · 3.2%
- Reverse fee (buyer pays)
- $200M · 3.2%
- Go-shop
- —
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Qatalyst
Sector context · Tech
- Comparable deals
- 46 in the prior 24 months
- Premium
- 28.0% vs. 30.8% sector median
- EV / Adj. EBITDA
- 31.0x vs. 17.3x sector median
- Break fee
- 3.2% vs. 3.0% sector median
Timeline
- AnnouncedNov 22, 2021
- Proxy filedDec 20, 2021
- Definitive proxyJan 10, 2022
- Shareholder voteFeb 9, 2022
- ClosedJul 21, 2022
Valuation · fairness opinions
Discounted cash flow$15.98$24.51
Trading comparables$12.65$24.03
Trading comparables$13.07$24.74
Precedent transactions$13.42$25.46
Precedent transactions$12.24$25.56
Offer $21.00
Implied value per Vonage Holdings Corp share by analysis, from Qatalyst.