STOCKHOLM, SWEDEN -- (Marketwired) -- 07/01/13 --
* Acquisition broadens Ericsson's broadcast services portfolio andfurther expands its capabilities in the TV industry
* 1,500 highly-skilled broadcast services professionals to join Ericsson
* Adding new operations in Europe and Australia
Ericsson (NASDAQ: ERIC), a world-leading provider of communicationstechnologyand services, today announced its intention to acquire Red Bee Media, aworld-leading media services company headquartered in the UK, from anentitycontrolled by Macquarie Advanced Investment Partners, L.P.
The acquisition, which is subject to regulatory approval, supportsEricsson'sstrategy to grow in the broadcast services market and takes advantage ofitstechnology and services leadership to help broadcasters and content ownersaddress the convergence of video and mobility. It will bring 1,500highly-skilled employees, as well as media services and operationsfacilities in theUK, France, Germany, Spain and Australia. This will further strengthenEricsson's broadcast services business, which was started in 2007 andexpandedin 2012 with the acquisition of Technicolor's Broadcast Services Division.
With 1,240 of Red Bee Media employees being based in the UK, Ericsson's UKbusiness would grow to around 4,000 employees and with more than one-thirdworking in the media services business, the UK will become a global mediahubfor Ericsson.
Since its foundation in 2005, Red Bee Media has established itself as astrongand diverse business with a growing number of customers around the world.Itprovides a range of media services; from media asset management to playoutanddigital video publishing, metadata services, multilingual access servicesandcreative services to major broadcasters and broadband platforms. Red BeeMedia,which is known for its high quality playout services, is also the largesteditorial metadata provider in Europe, delivers more than 100,000 hours ofsubtitling per year for leading broadcasters.
The Television and Media industry is undergoing an unprecedentedtransformationdriven by consumers' appetite for rich, interactive, anytime, anywhereentertainment. The confluence of communications, broadband and mediatechnologies and the use of IP and mobile networks to generate and deliversuchexperiences is creating new opportunities in the ecosystem.
New services are expanding and re-defining the way consumers experienceentertainment, placing new economic and creativity demands on businesses -whether they be broadcasters, telcos or other media companies - worldwide.According to the Ericsson Mobility Report June 2013 release, video is thesinglebiggest contributor to traffic in mobile networks and this is expected togrow60 percent annually until the end of 2018.
"Ericsson is making a step change to our business, cementing our commitmenttoTV and broadcast services and continuing a journey we started in 2007,"saysMagnus Mandersson, Executive Vice President and Head of Business UnitGlobalServices, Ericsson. "We can create value for broadcasters by making digitalcontent more accessible, enabling monetization of TV content moreefficiently.Video traffic shows very strong uptake in the mobile networks and Ericssoncanaddress the need of both broadcasters and telecom operators through ourtechnology expertise and services capabilities."
Ericsson's core capabilities in hardware, software, systems integration andmanagement/operations services have been deployed worldwide in thecommunications and broadband businesses to create success for many players.Ericsson provides innovative technology solutions for content acquisition,exchange, distribution, delivery and the provisioning of multi-screenentertainment experiences based on a 20-year, Emmy award winning heritageinmedia research and development.
Ericsson's broadcast services expertise makes use of its industry leadingposition in managed services and serves leading regional and globalbroadcastersto bring enhanced efficiency into their business operations - being it liveorthematic content.
Serving one billion subscribers worldwide, Ericsson is the leading providerofmanaged services for telecom operator networks. It has invested inprocesses,methods and tools in this segment for more than 15 years. In recent years,Ericsson has expanded this successful business model to other industries,suchas utilities, transportation and the TV industry.
The closing of the acquisition is subject to approval from relevantregulatoryauthorities and other contractual conditions. After completion, Red BeeMediawill be incorporated into Ericsson's Business Unit Global Services.
NOTES TO EDITORS
Photo of Magnus Mandersson:www.ericsson.com/thecompany/press/photolibrary/management
Ericsson's Mobility Report 2013: www.ericsson.com/ericsson-mobility-report
Ericsson's role in the TV industry - media kit:www.ericsson.com/thecompany/press/mediakits/tv-industry
Broadcast Services background material:www.ericsson.com/thecompany/press/backgrounders
Read more about Red Bee Media at www.redbeemedia.com
Red Bee Media is one of the world's leading media services companies.Workingwith broadcasters, content owners, platform operators and brands, thecompanyblends technology and creative expertise to provide a range of services;fromplayout, multi-platform media management and distribution through to accessservices, metadata, content discovery, companion applications, contentmarketingand brand consultancy.
Ericsson's acquisition of Technicolor's Broadcast Services Division
Extended partnership with TV5Monde: www.ericsson.com/news/1638215
Ericsson to manage HBO Nordic's playout services:www.ericsson.com/news/1638933
Ericsson to operate TV4 Group's playout services:www.ericsson.com/news/1355548
Download high-resolution photos and broadcast-quality video atwww.ericsson.com/press
Ericsson is a world-leading provider of communications technology andservices.We are enabling the Networked Society with efficient real-time solutionsthatallow us all to study, work and live our lives more freely, in sustainablesocieties around the world.
Our offering comprises services, software and infrastructure withinInformationand Communications Technology for telecom operators and other industries.Today40 percent of the world's mobile traffic goes through Ericsson networks andwesupport customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.In2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion).Ericssonis listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
Ericsson to acquire Red Bee Media :http://hugin.info/1061/R/1713075/568572.pdf
This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ericsson via Thomson Reuters ONE
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: Email Contact
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: Email Contact
Most Popular Stories
- Prosecutor to Investigate Walmart Police Shooting
- Mark Sanchez Suddenly a Hot QB Commodity
- GM to Announce New Jobs in Tennessee
- Smith & Wesson Misses Target
- Emirates Hit Libyan Targets With Airstrikes
- Marco Rubio Warns Obama on Deportations
- Michael Brown Funeral: Can Americans Change the Script of Violence?
- American Killed With ISIS Fighters in Syria
- Surf's Up! SoCal Prepares for Big Storm Surf
- Ford Hires 300 at Louisville Lincoln Plant