Legion Partners Comments on Sale of Vonage

Rhea-AI Summary

Legion Partners Asset Management, a 2.2% shareholder in Vonage Holdings Corp. (NASDAQ: VG), expressed strong support for Ericsson's acquisition of Vonage for $6.2 billion, or $21 per share. Chris Kiper from Legion Partners praised the strategic transaction as a key move to enhance shareholder value, highlighting their collaborative efforts with Vonage over five years. The partnership led to the appointment of Michael McConnell to Vonage's Board, which has been pivotal in governance. This acquisition is viewed positively by Legion Partners, reflecting confidence in the future potential of Vonage's shareholders.

Positive

• Ericsson's $6.2 billion acquisition of Vonage, valued at $21 per share, is a significant positive for shareholders.
• Legion Partners' support indicates strong investor confidence and validation of the strategic decision.
• Collaboration between Legion Partners and Vonage over five years has resulted in effective governance and shareholder engagement.

Negative

• None.

Applauds Vonage’s Decision to Maximize Shareholder Value

LOS ANGELES--(BUSINESS WIRE)-- Today, Legion Partners Asset Management, LLC (“Legion Partners”), a 2.2% beneficial, long-term stockholder of Vonage Holdings Corp. (NASDAQ: VG), issued the following statement regarding the news that Ericsson (NASDAQ: ERIC) will purchase Vonage for $6.2 billion in cash, or $21 per share.

Chris Kiper, Co-Founder and Chief Investment Officer of Legion Partners, stated:

“Legion Partners strongly supports Vonage’s decision to enter into this transaction, which we believe is an excellent outcome for all shareholders. We are pleased that our five-year collaboration with Vonage helped lay the groundwork for this important strategic transaction to unlock shareholder value, and commend the outstanding work done by CEO Rory Read and the entire Vonage Board for their continuous engagement and responsiveness to shareholder input over the years.”

As previously announced, Legion Partners entered into a Cooperation Agreement with Vonage in March 2019, pursuant to which Michael McConnell was appointed to the Vonage Board where he continues to serve as an independent director. Mr. McConnell serves as a member of the Nominating and Governance Committee, Audit Committee, and Transactions Committee (formed in February 2021).

About Legion Partners

Legion Partners is a value-oriented investment manager based in Los Angeles, with a satellite office in Sacramento, California. Legion Partners seeks to invest in high-quality businesses that are temporarily trading at a discount, utilizing deep fundamental research and long-term shareholder engagement. Legion Partners manages a concentrated portfolio of North American small-cap equities on behalf of some of the world’s largest institutional and high-net-worth investors. Learn more at www.LegionPartners.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211122006177/en/

Media Contact

Sloane & Company

Dan Zacchei / Joe Germani

dzacchei@sloanepr.com / jgermani@sloanepr.com

Source: Legion Partners Asset Management, LLC

FAQ

What is the significance of Ericsson's acquisition of Vonage (VG) for shareholders?

Ericsson's acquisition of Vonage for $6.2 billion, or $21 per share, is seen as a strategic move to maximize shareholder value, supported by Legion Partners.

How does Legion Partners view the acquisition of Vonage (VG) by Ericsson (ERIC)?

Legion Partners strongly supports the acquisition, considering it an excellent outcome for all shareholders and a result of effective collaboration.

When did Legion Partners enter into an agreement with Vonage?

Legion Partners entered into a Cooperation Agreement with Vonage in March 2019.

Who was appointed to the Vonage Board by Legion Partners?

Michael McConnell was appointed to the Vonage Board as part of the Cooperation Agreement and continues to serve as an independent director.