Technicolor has received a binding offer from Ericsson for the acquisition of its Broadcast Services activity. It includes a purchase price of €19 million, as well as a potential earn-out based on 2015 revenues of the activity of up to €9 million.
Technicolor’s Broadcast Services activity provides play-out services, live production support and media asset management services in three countries – France, the UK and the Netherlands – and the deal should help it expand to new markets.
It is also in keeping with Technicolor’s 2012-2015 strategic roadmap, presented by the company on February 24.
According to Frederic Rose, CEO of Technicolor, “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 know-how and global scale necessary to remain a key player in the worldwide broadcast industry.”
Magnus Mandersson, executive VP and head of business unit global services, Ericsson, added: “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.
He continued: “We combine our service and technology leadership with strategic investments in playout operations, broadband capability and competence.”
