Envivio, a pioneer in software-based video processing and delivery solutions announced it entering into a deal to be acquired by Ericsson, a giant communications technology and services.
Headquartered in San Francisco, Envivio is a pioneer in software-based video encoding with an installed base of more than 400 TV service provider and content owners customers in all markets throughout the world. Its premier customers include Comcast, Cox Communications, Liberty Global,, Sky, Telstra and Time Warner Cable. In the last year alone, the company made a revenue of $43 million.
Julien Signes, founder and CEO of Envivio said, “The uniting of Envivio’s pioneering software solutions and Ericsson’s strength in the marketplace is a great combination of our customers and stockholders. Ericsson shares a similar version for the future of video processing and shift to software defined and virtualized encoding solutions. Ericsson brings tremendous resources, a broad product and solutions portfolio and reach that will accelerate the adoption of Envivio’s software-based video solutions.”
The acquisition of Envivio would boost and add strength to Ericsson’s video compression position, blending its position in broadcast and contribution with Envivio’s prime multiscreen cable and telecom. It’s cloud-focused and software-based video capabilities will add core value to Ericsson’s wide list of media enrichment, processing, publishing, delivery and TV platforms allowing one to watch TV on any device.
“Our consumer research clearly shows that viewers are demanding TV on their terms on any device, and expecting experiences that continually evolve,” said Per Borgklint, Ericsson’s Senior Vice President and Head of Business Unit Support Solutions. “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.”
As per the definitive agreement, Ericsson will start a cash tender offer to purchase all the outstanding shares of Envivio, the merger would complete the tender offer by converting into right to receive $4.10 per share. Unanimous agreement has been obtained for the board of directors to recommend that Envivio’s stockholders tender their shares to Ericsson in the tender offer. The deal is expected to be closed by the last quarter of 2015, subject to other closing conditions. As per the deal, Envivio would continue to work with its customers and partners to develop its current software-based video solutions for video processing, delivery and monetization.