Ericsson has confirmed that it will record a noncash impairment charge of 11.4 billion Swedish crowns ($1.09 billion) in Q2 of this year, the company's second charge on its acquisition of Vonage.

The vendor acquired Vonage, a cloud communication provider, for $6.2bn in 2022.

According to the vendor, the impairment reflects lower anticipated market growth in some of Vonage’s current portfolio.

"We continue to advance our strategy to build a Global Network Platform for network APIs, which was the strategic impetus for the Vonage acquisition. We recently announced additional partnerships with leading mobile network operators and we see continued positive momentum across the industry," said Niklas Heuveldop, head of business area global communications platform and CEO of Vonage.

"Through this strategy, we are making advanced 5G network capabilities available to the world’s developer community to accelerate the innovation of value-added applications for industry and society. This will open up new revenue streams for our operator customers and spur growth in the telecom industry.”

Last year, Ericsson booked an impairment charge of $2.9bn concerning the acquisition.

Vonage was founded in 1998, initially as Min-X, a company that focused on providing residential telecommunications services based on voice over Internet Protocol (VoIP). The company changed its name to Vonage in 2001.