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."
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