IBC 2015: Ericsson to acquire Envivio in $125MN deal



| 11 September 2015

Extending its reach as an end-to-end solution provider, video compression, broadcast and communications giant Ericsson has bought encoding firm Envivio.

The acquisition, valued at $125 million, is intended to strengthen Ericsson with deep competence in software-defined and cloud-enabled architectures for video processing, enhancing its virtualised encoding in multiscreen cable and telecom. Envivio's cloud-centric and software-based video capabilities are regarded as now being a key addition to Ericsson's portfolio of media enrichment, processing, publishing, delivery, and TV platforms. Indeed Ericsson sees the acquisition as greatly enhancing its software video encoding capabilities and its virtualised encoding concept.

Envivio's advanced software solutions for pay-TV and TV Anywhere applications perform software-based video encoding/transcoding, processing, packaging and ad insertion. It has a customer base comprising over 400 TV service provider and content owner customers and in 2014 generated revenues of $43 million. Tier one Envivio customers include Comcast, Cox Communications, Liberty Global, Sky, Telstra and Time Warner Cable.

Commenting on the acquisition, Per Borgklint, Ericsson senior vice president and head of business unit support solutions, said: "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. 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."

The acquisition is expected to close in the fourth quarter of 2015, subject to customary closing conditions.