Ericsson acquires BS Division of Technicolor

Ericsson has submitted a binding offer to acquire the Broadcast Services Division of Technicolor. The closing of the acquisition is subject to relevant customary regulatory administrative approvals and consultations.

The acquisition will bring approximately 900 highly skilled professionals and playout operations located in France, UK and the Netherlands serving several leading broadcasters and will allow Ericsson to substantially increase its current broadcast operations in terms of channels managed and households reached.

"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. We combine our service and technology leadership with strategic investments in playout operations, broadcast capability and competence," said Magnus Mandersson, Executive Vice-President & Head of Business Unit Global Services, Ericsson.

Frederic Rose, CEO, Technicolor, said, "This transaction is consistent with Technicolor's strategy to focus on media monetization 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."