Ericsson has broadened its broadcast services portfolio and boosted its capabilities in the TV industry following a stated intention to acquire Red Bee Media, a high profile media services company based in the UK.
The acquisition supports Ericsson's strategy to grow in the broadcast services market while leveraging its technology and services strength to help broadcasters and content owners address the convergence of video and mobility.
The deal brings 1,500 highly-skilled employees, as well as media services and operations facilities in the UK, France, Germany, Spain and Australia.
Ericsson's broadcast services business started in 2007 and expanded in 2012 with the acquisition of Technicolor's Broadcast Services Division.
With 1,240 of Red Bee Media employees being based in the UK, Ericsson's UK business would grow to around 4,000 employees and with more than one third working in the media services business, the UK will become a global media hub for Ericsson.
Since its foundation in 2005, Red Bee Media has established itself as a strong and diverse business with a growing number of customers around the world.
It provides a range of media services; from media asset management to playout and digital video publishing, metadata services, multilingual access services and creative services to major broadcasters and broadband platforms.
The Television and Media industry is undergoing an unprecedented transformation driven by consumers' appetite for rich, interactive, anytime, anywhere entertainment.
The confluence of communications, broadband and media technologies and the use of IP and mobile networks to generate and deliver such experiences is creating new opportunities in the ecosystem.
New services are expanding and re-defining the way consumers experience entertainment, placing new economic and creativity demands on businesses - whether they be broadcasters, telcos or other media companies - worldwide.
According to the Ericsson Mobility Report June 2013 release, video is the single biggest contributor to traffic in mobile networks and this is expected to grow 60 per cent annually until the end of 2018.
"Ericsson is making a step change to our business, cementing our commitment to TV and broadcast services and continuing a journey we started in 2007," says Magnus Mandersson, Executive Vice President and Head of Business Unit Global Services, Ericsson.
"We can create value for broadcasters by making digital content more accessible, enabling monetisation of TV content more efficiently. Video traffic shows very strong uptake in the mobile networks and Ericsson can address the need of both broadcasters and telecom operators through our technology expertise and services capabilities."
Ericsson's core capabilities in hardware, software, systems integration and management/operations services have been deployed worldwide in the communications and broadband businesses to create success for many players.
Ericsson provides technology solutions for content acquisition, exchange, distribution, delivery and the provisioning of multi-screen entertainment experiences.
The closing of the acquisition is subject to approval from relevant regulatory authorities and other contractual conditions. After completion, Red Bee Media will be incorporated into Ericsson's Business Unit Global Services.