Ericsson to Acquire Envivio for $125M in All-Cash Deal: IBC 2015

Article Featured Image

Ericsson will acquire Envivio, the company announced today at its IBC press event, for $125 million U.S. The all-cash deal puts a value of $4.10 per share on the publicly-traded Envivio.

"We bring the software vision for video compression and processing," said Envivio president and CEO Julien Signes, who was on-hand at the event. Ericsson is strong at hardware compression, he said, so the two company's strengths were complementary.

Envivio's delivery architecture will also be an asset to Ericsson, Signes said. "We're a virtualized software architecture that I think they can leverage nicely." Besides sharing many customers, the two hold the save view of the future of streaming television. "We share much of the same vision in terms of where the industry is going."

While Ericsson and Envivio have worked together often over the years, Signes said the deal came together quickly. Ericsson plans to close in Q4 of this year. Many details remain to be worked out, including Signes's role post-acquisition. "I'll probably be part of that," he noted with a smile. Envivio's biggest center is in Rennes, France, and Signes said that wouldn't change. Envivio has 184 customers. Tier one partners include AT&T, Comcast, Liberty Global, Sky, Telstra, and Time Warner Cable.

The other big announcement from the event was that AT&T has chosen Ericsson to help evolve its TV platform. The announcement lacked specifics—evolve into what?—but suggests that AT&T, which finally closed on DirecTV this summer—is looking to create new streaming offerings for consumers.

AT&T will combines its U-verse and DirecTV platforms with Ericsson's help, creating new entertainment offerings for both satellite and wireless customers. Once combined, Ericsson will help augment the offering with new functionalities, said Elisabetta Romano, Ericsson's new vice president and head of solution area TV and media.

Ericsson talked up the transitional period the TV industry is experiencing, and emphasized its value in content creation, content enrichment services (such as adding captions and sports graphics), and content publishing (for both linear and on-demand delivery). This morning, the company announced a multi-year broadcast services deal with the U.K.'s Channel 5.

"We would like to be the strategy partner for the TV industry in this transformation," said Thorsten Sauer, vice president and head of broadcast and media services for Ericsson. He emphasized that his company has the scale, expertise, and innovation necessary to guide its business partners.

Streaming Covers
Free
for qualified subscribers
Subscribe Now Current Issue Past Issues
Related Articles

NAB 2016: Ericsson Debuts MediaFirst Video Processing Suite

Following its acquisition of Envivio in late 2015, Ericsson is jumping into software-defined video processing, helping broadcasters evolve their encoding and delivery operations.

Ericsson Works with Google to Debut OTT Cloud Connect: MWC

Partnering with several major players, Ericsson spearheads efforts to bring innovative OTT experiences to viewers and meet the growing demand for streaming video.

Ericsson Report Sees Brand Damage in Mobile Video Stream Delays

When mobile video is delayed, viewers think worse of the network and are less engaged with the brand. Mobile video will skyrocket in the coming years.

Consolidation Is the Talk of IBC: Will Imagine, Harmonic Be Next?

Kaltura pledges to remain independent, calling it the company's mission, but speculates about which of its colleagues' companies could be the next to be bought.

Ericsson Report Sees Big Gains for Video-on-Demand and Mobile

In its annual study on viewing habits, Ericsson sees a strong demand for user-generated content, and notes that cord-cutting and -shaving is still common.

Envivio Adds Service-Oriented Video Monitoring Option to Guru

By detailing trouble spots based on the services impacted, rather than the equipment involved, Guru helps companies prioritize.

Online Viewing Now Almost Level With Traditional TV: Ericsson

A sweeping report on viewing habits finds that people turn to online sources for entertainment nearly as often as they turn to the TV.