One Equity Partners will become the new majority owner of Media Solutions business with assets and staff transferring to a new independent company when the deal closes in the third quarter of 2018.
Börje Ekholm, President and CEO, Ericsson, says: “Media Solutions and Red Bee Media are leading providers of media products and services, and with the performance improvements that are currently being implemented, we see future upsides to both businesses. We are confident that the direction we announce today will enable us to create the best long-term value, for both our customers and our shareholders.”
Ericsson had initiated a strategic review of its two media businesses that it had built around the purchase of a number of playout centres including those of Sweden’s TV4, the Dutch NOS, and the former BBC Broadcast from where the Red Bee name was originally derived.
It had also purchased the former Tandberg Television and Microsoft Mediaroom operating system that had been rebuilt and rebranded as MediaFirst.
Steve Nylund, CEO, Red Bee Media, says: “Red Bee Media is already today a leading broadcast and media service provider, with a strong customer base among the top tier broadcasters and service providers. Our focus is now on improving and transforming Red Bee Media, in partnership with our customers, to enable our full potential as an independent and focused media services business.”
The strategic review evaluated different opportunities, including partnerships, divestments, and a continued in-house development, based on the value they generate for Ericsson.
One Equity Partners was spun out of JP Morgan bank and has investments in industrial, healthcare and technology sectors in North America and Europe.