The acquisition, which is subject to regulatory approval, supports Ericsson’s strategy to grow in the broadcast services market and takes advantage of its technology and services leadership to help broadcasters and content owners address the convergence of video and mobility.
“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,” said 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 monetization 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.”
The buyout will bring 1,500 highly-skilled employees, as well as media services and operations facilities in the UK, France, Germany, Spain and Australia.
With 1,240 of Red Bee Media’s 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.
Red Bee Media was founded in 2005 and provides a range of media services including asset management, digital video publishing, metadata services and multilingual access services.
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.