Ericsson to Acquire Envivio
September 10 2015 - 8:30AM
Dow Jones News
Telecommunications software company Envivio Inc. said Thursday
it agreed to be acquired by Telecom-equipment giant Ericsson in a
deal valued about $125 million.
Under the terms of the agreement, Ericsson will pay Envivio
holders $4.10 a share. The deal is expected to close in the final
quarter of 2015.
San Francisco-based Envivio is slated to join Ericsson's TV and
media business. The company makes software to process and
distribute Internet protocol-based video.
Its customers—telecom companies and content providers—use the
software to provide consumers with video on a range of devices,
from smartphones to laptops. The company's software uses video
compression and IP video networking technology that runs on
industry standard hardware.
Ericsson shed jobs this year as it transitions from a hardware
provider into a global leader in mobile-network software. The
layoffs were part of the overhaul of Ericsson's business away from
costly hardware into software and services. In 2004, 73% of the
company's revenue came from hardware, and only 27% from software
and services. By 2014, that mix had been almost completely
reversed.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 10, 2015 08:15 ET (12:15 GMT)
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