STOCKHOLM, SWEDEN -- (Marketwire) -- 03/13/12 --
* The addition of Technicolor's Broadcast Services Division will allow
Ericsson to become a leading provider in managed services for
broadcasters
* The acquisition will bring leading broadcast customers, about 900
highly skilled professionals and playout operations in France, UK and
Netherlands
* Closing of acquisition is expected around mid 2012
* Purchase price of EUR 19 million and a potential earn-out based on 2015
revenues of the Broadcast Services activity of up to EUR 9 million.
Ericsson (NASDAQ: ERIC), the world leader in communication technologies and services, today announced that it has submitted a binding offer to acquire the Broadcast Services Division of Technicolor, a worldwide technology leader in the media and entertainment sector, headquartered in France. 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 substantially increase its current broadcast operations in terms of channels managed and households reached.
The announced acquisition intention 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" says 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, declared: "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".
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.
Managed services is an example of Ericsson's continuous innovation - after creating this business model for telecom operators over 15 years ago, Ericsson has during the last years taken this successful business to other industries such as utilities and media.
NOTES TO EDITORS
Photo of Magnus Mandersson
http://www.ericsson.com/thecompany/press/photolibrary/management
Global Services Press Kit
http://www.ericsson.com/thecompany/press/mediakits/services
About Technicolor
www.technicolor.com
Other press releases about broadcast deals
Ericsson to operate TV4 Group's playout services
http://www.ericsson.com/news/1355548
MediaCorp selects Ericsson to enable and manage over-the-top interactive TV services
http://www.ericsson.com/news/1482958
Our multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room
Ericsson is the world's leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today more than 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2 billion subscribers.
We operate in 180 countries and employ more than 100,000 people. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2011 the company had revenues of SEK 226,9 billion (USD 35.0 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
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Press Release in PDF:
http://hugin.info/1061/R/1593417/501369.pdf
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Source: Ericsson via Thomson Reuters ONE
[HUG#1593417]
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