SAN FRANCISCO—Envivio has announced that it has been acquired by Stockholm-based communications technology and services company Ericsson. Envivio will continue to develop its software-based technology for video processing, delivery and monetization as part of Ericsson’s TV and Media portfolio.
“The uniting of Envivio’s pioneering software solutions and Ericsson’s strength in the marketplace is a great combination for our customers and stockholders,” said Julien Signès, founder and CEO of Envivio. “Ericsson shares a similar vision for the future of video processing and shift to software defined and virtualized encoding solutions. Ericsson brings tremendous resources, a broad product and solutions portfolio and reach that will accelerate the adoption of Envivio’s software-based video solutions.”
As per the agreement, Ericsson will commence a cash tender offer to purchase all of Envivio’s outstanding shares with a merger following the completion of the tender offer, which would result in all shares not tendered being converted into the right to receive $4.10 per share. The tender offer has not officially commenced. The acquisition is expected to close in the fourth quarter of 2015.