Ericsson will buy Technicolor's Broadcast Services division.
Technicolor today announced that it has received a binding offer for its Broadcast Services business from Ericsson ERIC), the world leader in communication technologies and services. 13 March 2012, Paris (France) – Technicolor (Euronext Paris: TCH) today announced that it has received a binding offer for its Broadcast Services business from Ericsson (NASDAQ:ERIC), the world leader in communication technologies and services.
The offer includes a purchase price of €19 million and a possible earn-out of up to €9 million based on 2015 Broadcast Services earnings.
Broadcast Services at Technicolor
includes play-out services, live production assistance, and media asset management. It employs roughly 900 people in three countries: France, the United Kingdom, and the Netherlands (as of January 2012).
Ericsson, the world leader in communication technologies and services, is focusing more on the broadcast sector right now. The Broadcast Services activity will be better positioned to grasp new market opportunities after being divested to Ericsson, which has managed services as one of its core areas.
This deal will help
Technicolor continue to leverage its existing portfolio, optimize its investment allocation, and generate free cash flow, as defined in its 2012-2015 strategic roadmap, which was unveiled on February 24, 2012. Technicolor's aim of decreasing debt and allocating capital investments to its other companies will be aided by the transaction.
“This acquisition is consistent with Technicolor's plan to focus on media monetization solutions, new growth companies, and enhance its balance sheet,” said Frederic Rose, CEO of Technicolor. Managed services are a core business for Ericsson, and the Broadcast Services activity will benefit from the company's know-how and global scale required to be a prominent participant in the global broadcast sector after this divesture is completed.”