Ericsson to Buy Vonage for $6.2 Billion, Bulking Up Cloud Presence

STOCKHOLM— Ericsson AB agreed to buy cloud-communications provider Vonage Holdings Corp. , for $6.2 billion, in deal that the Swedish telecom-equipment maker said will expand its wireless enterprise business and broaden its global offerings.

Ericsson, in what would be its biggest deal ever, agreed to pay $21 a share in cash for Vonage, representing a 28% premium to Friday’s closing share price. The purchase, which Holmdel, N.J.-based Vonage’s board has approved, will be financed through Ericsson’s existing cash resources.