Ericsson announces agreement to acquire Envivio
(Thomson Reuters ONE) -
* Acquisition extends Ericsson's leadership position in TV and Media as a
global end-to-end solution provider to enable customers to engage TV
consumers every day
* Ericsson to strengthen video compression position with combination of
software and hardware encoding
* Will bring deep competence in software-defined and cloud-enabled
architectures for video processing, enhancing Ericsson's virtualized
encoding approach
Ericsson (NASDAQ:ERIC) today announced its agreement to acquire Envivio
(NASDAQ:ENVI), by means of a tender offer for a price of USD 4.10 per share in
cash, or approximately USD 125 million in the aggregate. The acquisition will
strengthen Ericsson as a global innovator in enabling customers to deploy new
technologies and agile video processing to innovate new services that engage TV
consumers every day.
The acquisition will strengthen Ericsson's video compression position, combining
its leading position in broadcast and contribution with Envivio's leadership in
multiscreen cable and telecom. Envivio's cloud-centric and software-based video
capabilities will be a key addition to Ericsson's extensive portfolio of media
enrichment, processing, publishing, delivery, and TV platforms, enabling TV
experiences on any device.
Envivio is a global leader in software-based video encoding with an installed
base of over 400 TV service provider and content owner customers in all markets
globally. Envivio generated revenues of USD 43 million during full year 2014 and
is headquartered in San Francisco, CA. Envivio was founded in 2000 and has a
staff of approximately 200 employees worldwide.
Tier one Envivio customers include Comcast, Cox Communications, Liberty Global,
Sky, Telstra and Time Warner Cable. Envivio's advanced software solutions for
pay TV and TV Anywhere applications perform software-based video
encoding/transcoding, processing, packaging and ad insertion. Envivio's cloud-
centric pure software video processing is available on Intel-based appliances or
IT blade servers.
Per Borgklint, Senior Vice President and Head of Business Unit Support Solutions
at Ericsson, says: "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 will greatly enhance Ericsson's software video encoding
capabilities and its virtualized encoding concept, which enables abstraction of
video processing functions from architectural and functional boundaries,
enabling the flexibility to use both hardware and software based video
compression, as well as any deployment architecture.
Ericsson's customers will uniquely benefit from a cutting-edge combination of
market leading bespoke hardware and highly optimized pure software encoding that
will deliver an accelerated route to next generation UHD/HD services and High-
Efficiency Video Coding (HEVC) technology.
Envivio's customers will be able to rely on the global stability and scale and
the strong commitment of Ericsson in the TV and Media business with access to
Ericsson's full portfolio of products, solutions, and global services expertise
Under the terms of the definitive agreement, Ericsson will commence a cash
tender offer to purchase all of Envivio's outstanding shares, with a merger
following the completion of the tender offer which would result in all shares
not tendered in the tender offer being converted into the right to receive $4.10
per share. Certain of Envivio's major stockholders, collectively owning
approximately 34 percent of Envivio's outstanding common stock, have entered
into a tender and support agreement with Ericsson committing to tender all of
their Envivio shares in the tender offer and to vote in favor of the merger. The
acquisition is expected to close in the fourth quarter, 2015, subject to
customary closing conditions.
The board of directors of Envivio has unanimously agreed to recommend that
Envivio's stockholders tender their shares to Ericsson in the tender offer.
Once acquired the business will be reported as part of Segment Support
Solutions.
NOTES TO EDITORS
Ericsson at IBC 2015
At IBC 2015 in Amsterdam we are showcasing solutions and services that empower
customers to put the connected consumer at center stage in the new internet era
of television. We'll show how this is achieved through the delivery of seamless
experiences, personalized discovery, immersive content, and constantly evolving
services.
Ericsson will highlight how it sets itself apart with a unique combination of
consumer insights, industry-leading portfolio, and global transformation
services that are together helping customers embrace the opportunities of the
Networked Society.
You can find us at IBC in Hall 1, Stand 1:D61. Follow us during the event using
(at)EricssonTV and join the discussion using #IBCShow. Get the full media kit at
http://www.ericsson.com/thecompany/press/mediakits/ibc2015
Ericsson is the driving force behind the Networked Society - a world leader in
communications technology and services. Our long-term relationships with every
major telecom operator in the world allow people, business and society to
fulfill their potential and create a more sustainable future.
Our services, software and infrastructure - especially in mobility, broadband
and the cloud - are enabling the telecom industry and other sectors to do better
business, increase efficiency, improve the user experience and capture new
opportunities.
With approximately 115,000 professionals and customers in 180 countries, we
combine global scale with technology and services leadership. We support
networks that connect more than 2.5 billion subscribers. Forty percent of the
world's mobile traffic is carried over Ericsson networks. And our investments in
research and development ensure that our solutions - and our customers - stay in
front.
Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales
in 2014 were SEK 228.0 billion (USD 33.1 billion). Ericsson is listed on NASDAQ
OMX stock exchange in Stockholm and the NASDAQ in New York
www.ericsson.com
www.ericsson.com/news
www.twitter.com/ericssonpress
www.facebook.com/ericsson
www.youtube.com/ericsson
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations(at)ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations(at)ericsson.com
ADDITIONAL INFORMATION
The tender offer for the outstanding common stock of Envivio has not yet
commenced. This communication is for informational purposes only and it is
neither an offer to purchase nor a solicitation of an offer to sell shares of
Envivio common stock. At the time the tender offer is commenced, Ericsson will
file a tender offer statement, containing an offer to purchase, a form of letter
of transmittal and other related tender offer documents with the Securities and
Exchange Commission (the "SEC"), and Envivio will file a
Solicitation/Recommendation Statement on Schedule 14D-9 relating to the tender
offer with the SEC. Envivio's stockholders are strongly advised to read these
tender offer materials, as well as any other documents relating to the tender
offer and the associated transactions that are filed with the SEC, carefully and
in their entirety when they become available, and as they may be amended from
time to time, because they will contain important information about the tender
offer that Envivio's stockholders should consider prior to making any decisions
with respect to the tender offer. Once filed, stockholders of Envivio will be
able to obtain a free copy of these documents at the website maintained by the
SEC at www.sec.gov or by directing a request to Ericsson, Investor Relations,
+46 10 719 00 00 or e-mail: investor.relations(at)ericsson.com.
FORWARD-LOOKING STATEMENTS
This communication contains statements that are forward-looking. We want to
caution readers that any forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, may change based on various
factors. These forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties and actual results could
differ materially. Words such as "estimate," "target," "project," "plan,"
"believe," "expect," "anticipate," "intend" and similar expressions may identify
such forward-looking statements. Such forward-looking statements include the
anticipated changes in the business environment in which Ericsson operates and
Ericsson's future operating results relating to the potential benefits of a
transaction with Envivio and the ability of Ericsson to complete the acquisition
of Envivio, including the parties' ability to satisfy the conditions to the
transaction set forth in the definitive agreement for the transaction. Actual
results may differ materially from current expectations because of risks
associated with uncertainties as to the timing of the tender offer and the
associated transactions; the possibility that various conditions to the
consummation of the transaction may not be satisfied or waived; the possibility
that competing offers or acquisition proposals will be made; the effects of
disruption from the transaction on the respective businesses of Ericsson and
Envivio; the risk that stockholder litigation in connection with the transaction
may result in significant costs of defense, indemnification and liability; the
fact that the announcement and pendency of the transaction may make it more
difficult to establish or maintain relationships with employees, customers and
other business partners; and other risks and uncertainties pertaining to the
business of Ericsson and Envivio detailed in their respective filings with the
SEC from time to time.
Forward-looking statements in this document should be evaluated together with
the many uncertainties that affect the businesses of Ericsson and Envivio, in
their 2014 Annual Reports on Form 20-F and Form 10-K, respectively, and in their
other reports with the SEC. The reader is cautioned not to rely unduly on these
forward-looking statements. Ericsson expressly disclaims any intent or
obligation to publicly update any forward-looking statements, whether as a
result of new information, future events or otherwise, except as required by
law.
Ericsson announces agreement to acquire Envivio:
http://hugin.info/1061/R/1951034/709457.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire 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 GlobeNewswire
[HUG#1951034]
Unternehmensinformation / Kurzprofil:
Datum: 10.09.2015 - 12:00 Uhr
Sprache: Deutsch
News-ID 419279
Anzahl Zeichen: 12732
contact information:
Town:
STOCKHOLM
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 187 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Ericsson announces agreement to acquire Envivio"
steht unter der journalistisch-redaktionellen Verantwortung von
Ericsson (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
