Companies | A billion write-down for Ericsson due to the impairment of Vonage

Network equipment company Ericsson makes a write-down worth about one billion euros. The write-down of 11.4 billion kroner, or about one billion euros, to be recorded for the second quarter of the year is mainly related to impairments of intangible assets related to the Vonage acquisition, the company says on Thursday in the bulletin.

Swedish Ericsson bought US cloud services developer Vonage for $6.2 billion in 2022.

Ericsson’s according to the current write-down reflects a weaker than expected market outlook in part of Vonage’s current portfolio.

“After the deterioration of the market situation and after reorienting our investments to strategically prioritized areas, we have re-evaluated certain growth expectations, which led to a write-down of SEK 11.4 billion”, the company’s head of international communication platforms and CEO of Vonage Niklas Heuveldop says in the announcement.

News agency Reuters reports that Ericsson made a value reduction related to Vonage as well last year. At that time, it was 32 billion kroner, or about 2.8 billion euros.