Ericsson remains committed to closing its pending $6.2 billion Vonage acquisition despite the need to work through a significant approval hurdle.

The Sweden-based telecom equipment giant reported that it “continues to work closely” with the Committee on Foreign Investments in the United States (CFIUS) to gain approval for its acquisition of U.S.-based Vonage. Otherwise, the deal has gained “all other foreign and U.S. regulatory approval requirements.”

That final approval could be hindered by Ericsson admitting to multiple incidents of bribery and corruption by its operations in Iraq between 2011 and 2018. Most damning of all, the company said it can’t unequivocally deny that bribes paid by some employees during that period ended up in the hands of the Islamic State.

The Securities and Exchange Commission (SEC) earlier this month opened an investigation into Ericsson’s handling and reporting of its ongoing corruption issues.

Vonage noted in an SEC filing last month that it had granted Ericsson a 3-month extension to close the deal. Ericsson said it remains committed to closing the deal before the end of July.

History of a Controversial Deal

The deal was initially announced last November, and represents largest deal announced by Ericsson. It calls for Ericsson to pay a substantial sum for Vonage, which is considered one of the smaller players in the communications platform and unified communications services markets.

Ericsson at the time pointed to Vonage’s APIs and footprint of at least 1 million registered developers globally as core assets it intends to leverage and integrate into its platforms for enterprises.

Ericsson CEO Börje Ekholm said Vonage provides the company with key capabilities that enhance its position in the wireless enterprise market. “Vonage creates impetus for the second leg of our strategy, developing a global open network innovation platform,” he said on a conference call.

“Our shared intent with Vonage is to develop a platform that allows developers to access network capabilities, which literally puts the power of the wireless networks at their fingertips,” Ekholm added.