Telecom Lead Europe: Ericsson is set to acquire the
broadcast services division of Technicolor, a technology provider for media and
entertainment sector, for 19 million euros.
The acquisition will bring approximately 900
professionals and operations located in France, U.K. and
the Netherlands serving several broadcasters.
Ericsson is looking at substantially increasing its
current broadcast operations in terms of channels managed and households.
The proposed acquisition is in line with Ericsson’s
managed services strategy to increase its capabilities in the broadcasting
area. Ericsson applies the managed services business model established in
telecom operations, to improve efficiency, introduce innovation and increase
revenues for the broadcasters.
“As the TV industry is undergoing fundamental
changes with the transition to multi-platform, on-demand television, teaming up
with a trusted partner enables broadcasters to meet the increasing commercial
and technological complexity and competition in the TV market,” said
Magnus Mandersson, executive vice president and head of Business Unit Global
Services, Ericsson.
This transaction is consistent with Technicolor’s
strategy to focus on media monetization solutions, new growth businesses, and
strengthen its balance sheet.
For Ericsson, managed services are a core business and
after completion of this divesture, the Broadcast Services activity will
benefit from the company’s know-how and global scale necessary to remain a key
player in the worldwide Broadcast industry,” said Frederic Rose, CEO of
Technicolor.
Ericsson claims that it is the number one independent
playout service provider in the Nordic countries, and has managed services
agreements with broadcasters in Europe and Asia.
After this acquisition Ericsson will be the leading
independent playout service provider in Europe. Recently, TV4 Group
selected Ericsson to run the day-to-day transmission of its TV channels for
delivery to service providers. This will improve efficiency and enable TV4 to
focus on its core business.
Ericsson closes Telcordia acquisition
Recently, Ericsson completed the acquisition of Telcordia
for $1.15 billion in an all cash transaction, on a cash and debt-free basis.
Telcordia is now part of the Ericsson Group and its approximately 2,600 skilled
employees have joined Ericsson.
