Ericsson Acquiring Technicolor’s Broadcast Services Division
Ericsson has announced that it has made a binding offer to purchase the Broadcast Services Division of Technicolor, saying that the acquisition was “in line with Ericsson’s managed services strategy to broaden its capabilities in the broadcasting area.” The transaction is subject to regulatory approval. If approved, the deal will consolidate efforts of some 900 employees at playout operations located in France, the Netherlands and the United Kingdom.
“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 at Ericsson. “We combine our service and technology leadership with strategic investments in playout operations, broadcast capability and competence.”
Technicolor’s chief executive officer, Frederic Rose characterized the deal as “consistent with Technicolor’s strategy to focus on media monetization solutions, new growth business, 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,” Rose said.
The announced purchase price for the Technicolor unit was 19 million Euros, with the acquisition expected to occur in mid 2012. Ericsson is headquartered in Stockholm, Sweden and Technicolor’s central headquarters are located in France.