By Will Feuer
Ericsson will book a roughly $2.9 billion impairment charge tied to its cloud-communications business Vonage, which the Swedish telecom-equipment maker bought for more than $6 billion last year.
Ericsson will record the charge of 32 billion Swedish Krona, or roughly $2.93 billion, in the third quarter. The company said it is booking the charge to reflect the steep drop in the stock price of Vonage’s peers, higher interest rates and an overall slowdown in Vonage’s core markets.
Ericsson said Vonage remains key to the company’s strategy of expanding its enterprise business.
Ericsson’s acquisition of Vonage marked the company’s largest-ever deal.
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