Ericsson strengthens video compression portfolio with Envivio acquisition

MUMBAI, INDIA: Ericsson has announced the completion of the acquisition of Envivio.

The transaction was completed through a merger of its indirect wholly-owned subsidiary, Cindy Acquisition Corporation, with and into Envivio. Envivio survives the merger as a wholly-owned subsidiary of Ericsson, the companies said in a prepared statement.

Envivio is a global provider of software-based video encoding with an installed base of over 400 TV service providers and content-owner customers in all markets globally. The deal will strengthen Ericsson’s position as a leader and global innovator in TV and media. It will enable Ericsson’s customers to deploy new technologies and agile video processing, and to develop innovative new services that engage TV consumers every day.

The merger follows the successful completion of the tender offer by Ericsson for all shares in Envivio for the price of $4.10 per share.  As of expiration of the tender offer, 26,385,322 shares (including 58,467 shares pursuant to guaranteed delivery procedures) were validly tendered and not withdrawn in the tender offer, representing in excess of 93 percent of Envivio's issued and outstanding shares.  All validly tendered shares have been accepted for payment in accordance with the terms of the tender offer, Ericsson said.