Ericsson to book $1.1 billion impairment on weaker outlook for Vonage

:Cell telecoms tools maker Ericsson talked about on Wednesday this can file a noncash impairment fee of 11.4 billion Swedish crowns ($1.09 billion) in the second quarter of 2024, the second writedown on its acquisition of Vonage.

The impairment fee reflects decrease anticipated market increase in some of Vonage’s fresh portfolio, the firm talked about in an announcement.

The Swedish telecom gear maker provided cloud dialog firm Vonage in 2022 for $6.2 billion.

“Given deterioration available in the market atmosphere and optional selections now we have faith made to refocus our investments in strategically prioritized areas, now we have faith reassessed obvious increase assumptions,” Vonage Chief Govt Officer Niklas Heuveldop talked about.

We proceed to come our technique to design a Global Community Platform for network application programming interfaces (APIs), which changed into once the strategic impetus for the Vonage acquisition, he added.

This comes after Ericsson talked about in 2023 it recorded a 32 billion Swedish crown impairment fee connected to the acquisition.

At the time of the deal, it changed into once decided that Vonage would feature as an honest unit of Ericsson. Heuveldop changed into once appointed unique Head of Trade Enviornment Global Communications Platform and CEO of Vonage earlier this yr.

($1 = 10.4934 Swedish crowns)