Envivio Acquired by Ericsson to Boost its Exposure in Telecommunication Market

Published Date : Sep 16, 2015

Ericsson recently signed a merger deal with Envivio, a video encoding company, with an attempt to boost its coverage in the telecommunication and wireless market. The acquisition is likely to assist Ericsson to utilize skillful expertise of Envivio, to improve AT&T Inc.’s TV platform as AT&T has assigned a task to Ericsson to integrate and enhance its TV platform. The procurement calls for the support solution segment including operations support system (OSS), and business support system (BSS), television and media, and mobile commerce. Envivio doesn’t spot as the very first acquisition of Ericsson to boost its position in businesses such as OSS and BSS, mobile commerce, and television and media. In order to improve the support solutions business, the company acquired Telcordiafor $1.15 billion in 2012. This acquisition proved beneficial for the firm as it contributed SEK 2.1 billion in sales for the same year. This year, the firm acquired Sunrise Technology to strengthen the support solutions business further. 

Further, the firm acquired Microsoft’s Mediaroom in order to strengthen the media and television segment. Microsoft’s Mediaroom holds an IPTV platform serving around 13 million customers globally, with 25% market share. With this acquisition, Ericsson moved ahead and reached the top position of the IPTV market and is predicted to reach a value of $80 billion by 2020. During this period, most of the growth came from the APAC region.

Last year, Azuki Systems was acquired by the firm, which boosted Ericsson’s ‘TV Anywhere’ services. This acquisition also offered Ericsson some important technologies in content protection and adaptive bitrate. Ericsson’s support solution business did not attribute as expected to the company’s revenue figures in the recent past. But with increasing focus of the company towards improvement of its BSS, OSS, and mobile commerce portfolios, it aims to reach the top position in the market in coming few years. Envivio aims to guide Ericsson’s ambitions to expand its market coverage.