In a move aimed at positioning it as a leading provider in managed services for broadcasters, Ericsson is acquiring the broadcast services division of media and entertainment technology specialist Technicolor in a €19 million deal. The closing of the acquisition is subject to relevant customary regulatory administrative approvals and consultations.
The acquisition will bring approximately 900 highly skilled professionals and playout operations located in France, UK and the Netherlands serving several leading broadcasters and will allow Ericsson to increase substantially its current broadcast operations in terms of channels managed and households reached.
The deal is in line with Ericsson’s managed services strategy to broaden 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,” commented Magnus Mandersson, Executive Vice President and Head of Business Unit Global Services, Ericsson. “We combine our service and technology leadership with strategic investments in playout operations, broadcast capability and competence.”
Frederic Rose, CEO of Technicolor, said the deal transaction was consistent with Technicolor’s strategy to focus on media monetisation 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,” he suggested.
Ericsson is the leading provider of managed services for telecom operators and has invested in processes and tools in this segment. With this acquisition Ericsson broadens its managed services for media broadcasters offering and confirms the company’s long term ambition and commitment to the area. Ericsson 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.