Swedish telecoms equipment provider Ericsson has completed its acquisition of the Broadcast Services Division of Technicolor, a worldwide technology leader in the media and entertainment sector, headquartered in France.
Ericsson has paid €19mn for the division, with a potential earn-out based on 2015 revenues of the Broadcast Services activity of up to €9mn.
Over 900 highly skilled employees are to be integrated into the Ericsson group in business unit Global Services over the coming months, and will work under the Ericsson brand as of today.
This acquisition is the latest in a series of efforts by Ericsson to strengthen its standing as a provider of managed services for media broadcasters, after having pioneered the business model of managed services for telecom operators over 15 years ago.
Magnus Mandersson, Executive Vice President and Head of Business Unit Global Services, Ericsson, says: “With this acquisition Ericsson has strengthened its position in the broadcast managed services market and reinforced our growth ambitions. Managed services in one of the main focus areas for Ericsson and we will continue to invest and expand this area.”