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Ericsson buys Technicolor broadcast unit
14 March 2012
Ericsson boosts managed services for broadcasters with €19m acquisition of former Thomson division
Ericsson will acquire the broadcast services division of French media company Technicolor for €19 million and a potential earn-out of up to €9 million.
The French company was called Thomson until 2010 when it took the name of its US subsidiary, better known for the invention of colour movie technology in the 1920s.
Ericsson has submitted a binding offer for the acquisition, which will be used to enhance its offering of managed services for media broadcasters.
Frédéric Rose, CEO of Technicolor, said: “This transaction is consistent with Technicolor’s strategy to focus on media monetisation solutions, new growth businesses, and strengthen its balance sheet. For Ericsson, managed services are a core business and after completion of this divesture, the broadcast services activity will benefit from the company’s knowhow and global scale necessary to remain a key player in the worldwide broadcast industry.”
Ericsson said the deal will help boost the reach and volume of its broadcast operations, adding around 900 employees and playout operations across France, Netherlands and the UK.
Magnus Mandersson, executive vice president and head of the global services business unit at Ericsson, said: “As the TV industry is undergoing fundamental changes with the transition to multi-platform, on-demand television, teaming up with a trusted partner enables broadcasters to meet the increasing commercial and technological complexity and competition in the TV market.”
Technicolor’s telecoms equipment division, formerly called Cirpack, is not involved in the transaction. GTB
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