Ericsson buys cloud TV firm for $125 million

Ericsson is to buy cloud-centric and software-based video company Envivio as part of its strategy to improve its TV and video portfolio.

Envivio, based in San Francisco, has customers including Comcast, Cox Communications, Liberty Global, Sky, Telstra and Time Warner Cable. The Swedish said that Envivio’s cloud-centric and software-based video capabilities will be a key addition to its extensive portfolio of media enrichment, processing, publishing, delivery and TV platforms, enabling TV experiences on any device. 

Per Borgklint, senior vice president and head of the support solutions business unit at Ericsson, said: “I look forward to welcoming the market leader in pure software-defined video encoding, processing and packaging into Ericsson. The combination will strengthen our encoding position with both custom silicon and pure software encoding, delivering performance and flexibility.”

Envivio, founded in 2000, had revenues of $43 million in 2014, and employs 200 people, said Ericsson. 

The board of directors of Envivio has unanimously agreed to recommend that Envivio’s stockholders tender their shares to Ericsson in the tender offer of $4.10 a share, said Ericsson. Holders of 34% of Envivio’s shares have already agreed to sell their shares to Ericsson, which said the acquisition is expected to close in the fourth quarter of 2015.

Borgklint added: “Our consumer research clearly shows that viewers are demanding TV on their terms on any device, and expecting experiences that continually evolve. We are committed to offering our customers a clear path towards fully agile cloud agnostic platforms that delight TV consumers.”

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